# What is policy cancellation?

> Policy cancellation ends insurance before the scheduled expiration date.

Glossary date: July 13, 2026.

## How it works

A customer or insurer may cancel under the contract and state law. Notice periods, permitted reasons, refunds, and effective times vary.

## Example

An insurer sends a notice that coverage will end on a stated date because a required premium remains unpaid.

## Why it matters

Coverage can end before the next renewal date, creating an uninsured gap.

## What to check on your policy

Read the reason, effective date and time, amount due, reinstatement terms, refund calculation, and appeal or complaint rights.

Coverage, definitions, limits, and legal requirements vary by policy and state. Your declarations page and policy forms control your coverage.

## Related terms

- [Policy nonrenewal](https://locations.goautoinsurance.com/car-insurance-glossary/policy-nonrenewal.md)
- [Insurance lapse](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-lapse.md)
- [Insurance installment plan](https://locations.goautoinsurance.com/car-insurance-glossary/insurance-installment-plan.md)

- [Car insurance guide](https://locations.goautoinsurance.com/car-insurance-guide.md)
- [Complete glossary](https://locations.goautoinsurance.com/car-insurance-glossary.md)