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Yes, you may receive a refund if you cancel your car insurance midterm. The amount of the refund depends on various factors, including the insurance company’s policy, the duration of your coverage, and any applicable fees.

Key Takeaways

  • Car insurance midterm cancellation can result in a refund, but its value is determined by factors like the insurance company’s policies, coverage duration, and potential fees.
  • Refund calculation is often done on a pro-rata basis, returning a portion of the premium for unused coverage days.
  • Potential deductions include cancellation fees, and a smaller refund might occur due to short-rate cancellation, which considers administrative costs.

Understanding refund calculation

  • Pro-Rata basis – Many insurance providers calculate the refund on a pro-rata basis. This means you’ll get back a portion of the premium for the unused days of your coverage.
  • Cancelation fees – Some insurers may deduct a cancelation fee from the refund amount, so it’s essential to review your policy for any potential charges.
  • Short-rate cancelation – In some cases, a short-rate cancelation might apply, resulting in a smaller refund than expected. This occurs when the refund amount is less than the pro-rata calculation due to additional administrative costs.

How to request a refund

  • Contact your insurer -To initiate the cancelation and refund process, get in touch with your insurance provider or agent and provide them with the necessary details.
  • Return required documents – If instructed, return your insurance documents to the company to confirm the cancelation officially.
  • Wait for processing –  The refund process may take a few weeks, so be patient while the insurance company calculates the exact refund amount.


You may receive a refund if you cancel your car insurance midterm. However, the amount can vary depending on how much of the coverage period you have used, the presence of cancelation fees, and any short-rate considerations. To ensure a smooth refund process, reach out to your insurer, follow their guidelines, and understand the refund calculation method.