Although state laws vary, many states allow insurance carriers to cancel an insurance policy so long as proper notice is given. On average, this notice can range from no notice at all up to 60 days. In contrast, the insured party can often cancel his policy at any time.

Notice

The circumstances in which an insurance carrier can end your coverage usually depend on the type of policy and state law. For example, in Massachusetts, an auto insurance company must give an insured party 20 days' advance notice of cancellation. In Wisconsin, many insurance carriers are required to provide 10 days' advance notice. In Florida, property insurance carriers have to give 20 days' advance notice unless you made an intentional misrepresentation on your application or otherwise didn't comply with underwriting requirements.

Additional Considerations

In addition to being able to cancel insurance policies midterm, insurance companies can often cancel policies at other times, depending on state law. For example, if you fail to make a payment, violate conditions of the policy, or misrepresent or fail to disclose important information, the carrier can usually cancel the policy at any time so long as proper notice is given. A carrier can also typically cancel a policy within the first 60 days of issuance, on average, for any reason.