In all likelihood, no. Most companies don’t have cancellation fees attached to their policies and will refund you any unused premium. For example, let’s say you paid for a six-month policy but you were only insured for three. Typically, in this scenario, you’ll receive a refund for the half of the policy that wasn’t used.

However, it’s important to make sure that you always have car insurance and there’s no lapse in coverage. If it’s available in your state, it’s recommended that you get a “non-owner policy,” which is ideal for individuals who don’t own a car but don’t want to go into a lapse. This way, if you do get another car and new insurance, your rates won’t go up dramatically and you can receive a continuous insurance discount on your policy.