State Farm is the largest auto insurer in the US — but biggest doesn't mean cheapest. If you haven't shopped around in 2+ years, you're likely overpaying. Here's how to cancel and switch.
🚨 Critical: Get your new insurance policy active BEFORE canceling State Farm. Even one day without coverage is illegal in most states and will increase future premiums.
How to Cancel State Farm
Secure new coverage first — effective date should match or overlap
Call your State Farm agent (the person who sold you the policy)
If you don't know your agent, call 1-800-732-5246
Say: "I'd like to cancel my [auto/home] policy effective [date]"
Your agent will try to retain you — see rebuttals below
You may need to sign a cancellation form (some agents email or fax this)
Get written confirmation with the exact cancellation date
If you have bundled policies (auto + home), decide if you're canceling all or just one — unbundling may raise the remaining policy's rate
The Agent Retention Barrier
State Farm's agent model means you can't just click "cancel" online. Your agent earns commission on your policy, so they have personal financial incentive to keep you. This isn't necessarily bad — they may find discounts you're missing — but be aware of the dynamic.
🛡️ Retention Script Rebuttal: "Let me see if I can find you a better rate" → "I appreciate that. I already have a quote for $X/year from [carrier]. Can you match or beat that?" (Give them a chance — sometimes they can.)
"You'll lose your loyalty discount" → "My loyalty discount doesn't offset the loyalty tax. I'm paying $X more than comparable new customer rates."
"Your claims history might be an issue with other carriers" → "I've already been quoted by [carrier] with my full claims history. The rate is lower."
State Farm Refund Policy
Prepaid (6-month or annual): Pro-rata refund for unused days
Monthly payment: Billing stops after cancellation — no refund needed
Refund timeline: 7-14 business days, same payment method
Home insurance with escrow: Refund goes to your mortgage company, which adjusts your escrow
No cancellation fee
Canceling Home Insurance (Special Considerations)
Mortgage requirement: Your lender requires continuous homeowners insurance — never cancel without replacement
Escrow notification: Tell your mortgage company about the switch so they pay the new carrier
Claims-free discount: If you haven't filed claims in 3-5 years, make sure your new carrier recognizes this
Bundle savings: If you only cancel auto and keep home (or vice versa), you lose the multi-policy discount on the remaining policy
How to Shop for Better Rates
Get 5+ quotes: The Zebra, Policygenius, GEICO, USAA (military), Liberty Mutual, Travelers
Compare apples to apples: Same coverage limits, same deductibles, same add-ons
Ask about bundles: New carrier may offer better auto + home bundle than State Farm
Check credit-based rates: Your credit score significantly affects premiums in most states
Timing matters: Shop 2-3 weeks before your renewal date for the best transition
📊 Find All Your Recurring Charges Upload your bank statement to JustCancel — we'll find every subscription and recurring charge, including insurance premiums.