How do you get a refund on car insurance?

After a couple of months with my current provider, I realized that I could get a better deal elsewhere. I'd like to switch, but I already paid for the entire upcoming month. Is there any way I can get a refund on my insurance when I cancel?

Answer
Short answer: In all likelihood, yes!
The longer answer is that you probably can, but it’ll depend on your insurer’s rules for cancellation and how much you have left on your policy. While most insurance companies do not have a cancellation fee, some do. The fee can be a flat rate of around $25-$50, or a short rate cancellation fee.
Short rate fees are a calculation of 10% of the unearned premium. For example, if you have a balance of $866 left on your policy, the cancelation fee would be $86.60. If your policy is paid in full, you will get a refund of $779.40.
It would be a good idea to ask your current agent what the cancelation procedures are.
While you’re still looking for other providers to switch to, you might want to try using Jerry to save yourself some time and effort! We’ll get you free quotes from different providers so that you can see all the options out there and choose which plan is best for you.
Good luck with the hunt for a provider, and enjoy your refund!
Ben Guess
Answered on Nov 02, 2021
Ben has a BA in Journalism + Design from The New School, as well as three years’ experience in content writing and data journalism. They are deeply interested in how the car industry intersects with issues of inequity in the world, as well as in making auto insurance more accessible through writing. When they’re away from the keyboard, they enjoy baking, embroidering, and playing Dungeons and Dragons with friends. They are based in Boston, Massachusetts.
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