If you paid your premium in advance and cancel your policy before the term ends, the insurance company must reimburse the remaining balance in most cases. Most auto insurers will pro rate your reimbursement based on the number of days your current policy was in effect. If you cancel your car insurance before the end of your policy term, you can receive a refund if you paid your premium in advance. There are a few scenarios where canceling a policy may qualify you for a refund from car insurance.
The cost of insurance changes if the term is reduced to less than the term of the original contract. When the deadline gets shorter, your monthly payments are no longer on schedule. You can end up owing money even after your policy is canceled. There may be a fine that must be paid, as well as any other fees.
You can cancel a policy at any time. Make sure you have your new car insurance in place before you cancel. You don't want there to be any interruption in coverage, even if it's for a day. Car insurance companies consider drivers with a coverage gap to be more at risk, so they may charge you higher rates.
Google “how do I cancel my insurance policy” or “how do I cancel your car insurance” and you'll get a variety of results. If the insurance company cancels your policy, you'll normally get a refund from car insurance, unless they cancel the policy for non-payment. Once you have a start date for the new car insurance policy, you can cancel your current policy, but remember to make sure that the coverages overlap so you don't run out of insurance. Even if you intend to find a new car insurance company, not making the payments completely could result in a poor payment history and make it difficult to find affordable rates.
Talk to a licensed insurance agent to learn more about how driving your vehicle without insurance might affect you. You can reduce your coverage without canceling your policy, such as canceling comprehensive insurance and car insurance by collision. All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy.
Many people decide to wait until the insurance renewal date before canceling their policy, because they want to avoid paying a penalty, but sometimes staying with the insurance company just to avoid a penalty isn't the best option. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. Because insurance premiums are determined in part by where you live, you can get a lower rate on your new policy if you move to an area where rates are cheaper, and your insurer can reimburse part of your insurance premium. If you sell your car and no longer need coverage, your insurance company can send you a refund check if your policy is canceled before its term ends.
If you decide to cancel your policy or your insurance company cancels it, you usually won't receive a refund from car insurance unless you've paid the premium in advance.