Are there cancellation fees or hidden charges for ending a car insurance policy early?
I'm planning to sell my car a few months before my car insurance expires. If I dissolve my insurance early, will I have to pay any cancellation fees or hidden charges?
Answer
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 lapse in coverage.
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.
Now might also be the best time to start shopping around for a new insurance provider. The free Jerry app can compare quotes from 50 of the top insurance providers to help you find the best deal in minutes.
Savannah Grabek
Answered on Aug 05, 2021
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