If I want to switch car insurance providers and end my current coverage early, will I get a prorated refund?

Question

I found a way cheaper policy with another carrier, so I want to cancel my old auto insurance policy. But there's a problem — I already paid for the full year with my old carrier. Can I get some of that money back, since I don't actually want to stay with them the whole year?

Answer 1

Jessica

Car Insurance Expert

Thanks for your question! If you’ve already paid the insurance company either in full or for a month of coverage ahead, you should receive a prorated refund. An insurance company will refund you any “unearned premium,” meaning any premium paid to the company that they didn’t use for the period of time they provided coverage.