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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?

avatar
Ben Guess · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
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!
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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