Car Insurance Will I receive a refund if I cancel my car insurance midterm? Yes, you may receive a refund if you cancel your car insurance midterm. By Insure.com's Editor | Updated on August 18, 2023 The page is part of the topic how to cancel car insurance Why you should trust Insure.com Quality Verified At Insure.com, we are committed to providing honest and reliable information so that you can make the best financial decisions for you and your family. All of our content is written and reviewed by industry professionals and insurance experts. We maintain strict editorial independence from insurance companies to maintain editorial integrity, so our recommendations are unbiased and are based on a comprehensive list of criteria. 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. Conclusion 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. In case you missed it Best Car Insurance Companies of 2023 Car insurance rates by state: The most expensive and cheapest states for car ins... What is Full Coverage Car Insurance? A complete guide to car insurance costs for seniors A complete guide to adding a teenager to your car insurance policy What to do after a car accident that’s not your fault Total warfare: What to do when your auto insurer totals your car Car insurance claims: Who gets the claims check? Buying and insuring a used car: Most and least expensive models to insure in 202... The Best Car Insurance for Bad Credit of 2021 The best car insurance companies for speeding tickets Car insurance after a DUI Guide to Car Insurance Discounts Proper insurance coverage for college-bound children How to read (and actually understand!) your auto insurance policy Car Insurance Companies New driver insurance grace period: What you need to know How much do insurance agents make Autonomous cars: 5 delightful and 5 distressing things Busted! Part 1: How insurance companies spot bogus claims Insurance options for rideshare drivers 10 things that are illegal but shouldn’t be 1/1 Get instant quotes now ! Please enter valid zip Get Quotes