If you've never submitted a claim, do car insurance companies give you your money back?

If I've never made a claim for damages and I want to cancel a policy, shouldn't my money be returned to me?

Answer
Car insurance is designed to offset risk. By paying a premium to a car insurance company, you are paying them to take on your risk.
When all policyholders do this, it creates a safety net or pool. While you might not have submitted a claim, your premium adds to the pool to ensure that your insurance company can pay for other policyholders’ claims. You aren’t able to get your money back because it’s now in the pool for you and others to use.
Had you needed to submit a claim, you also would have used money from the pool.
There are only a few situations where carriers will issue a refund. If you cancel within the first 10 days of getting a new policy, you’ll typically be refunded your down payment. if you cancel mid-term and have paid in full, carriers will often refund the unused portion of your premium. “
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Emily Maracle
Answered on May 21, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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