Your insurance company can issue a refund if your policy is canceled and you have paid your premium in advance. Receiving an insurance refund will largely depend on the reason you canceled the policy and the amount of the premium you paid in advance. If you pay the full premium up front, you'll usually get a refund when you cancel your policy. If you pay your premium monthly, you may or may not receive a refund depending on when you cancel.
The final insurance policy premium for any policy is determined by the insurance company upon application. In most cases, if you prepaid for car insurance coverage and chose to cancel your policy before it ends, you're entitled to a refund minus the cancellation fees. If you sell your car and no longer need coverage, your insurance company can send you a refund check if your policy is canceled before its term ends. Stephanie Nieves was an editor and insurance expert at Policygenius, where she covered home and auto insurance.
If the coronavirus outbreak has affected your ability to pay your car insurance premiums, contact your insurer and ask about options for people with financial difficulties. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. If you paid your premiums in full and canceled your car insurance policy before it ran out, most insurance companies will reimburse you for the remaining months. Car insurance is financial protection if you have an accident and damage someone else's vehicle or cause injuries to them.
To keep your policy in effect, you must pay your auto insurance premium monthly, semi-annually, or annually during the period of your policy. You should only cancel your car insurance if you have another car insurance policy prepared and ready to start. Because insurance premiums are determined in part by where you live, you can get a lower rate on your new policy if you move to an area where rates are cheaper, and your insurer can reimburse part of your insurance premium. With full payment, you're more likely to receive a refund of your initial car insurance payment, since you paid months of coverage in advance.
Let's say you had several accidents and your insurance company decided that it was too risky to insure you. If you want to reduce your car insurance rates, see if your insurance company offers any other discounts.