If the insurance company cancels your policy, you'll normally get a refund from car insurance, unless they cancel the policy for non-payment. If payment doesn't occur, you won't receive any refund and you'll continue to owe the insurer any unpaid premiums. If you sell your car and buy a new one, you'll still need coverage because most states require drivers to have car insurance. 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.
If you change your car insurance company and find better rates with another insurance company, you may want to cancel your current policy before it expires. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. Insurance refunds are usually issued through the same payment method that you use to pay for your insurance. So what steps should you take to get a car insurance refund? The exact process may vary depending on the insurer.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. There are different reasons to get a car insurance refund, and the process may vary depending on your situation. 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. If you cancel your car insurance outside of this cooling off period, you could still receive a partial refund.
When you take out an auto insurance policy, you have what's called a 14-day cooling off period during which you can cancel. If you decide to cancel your policy or your insurance company cancels it, you usually won't receive a refund from car insurance unless you've paid the premium in advance.