Can You Get a Refund on Car Insurance? (2024)

FAQs

Can You Get a Refund on Car Insurance? ›

You'll want to double-check the information on your card to make sure it is correct. Consider whether you're entitled to a refund: You're usually entitled to a refund if you paid any of your premium in advance and then canceled your plan before it was actually due.

Your insurance company may issue a refund if your policy is canceled, and you've paid your premium in advance. Receiving an insurance refund will largely depend on why you're canceling the policy and how much of the premium you paid in advance.

A return premium factor is calculated by taking the number of days remaining in the policy period divided by the number of total days of the policy. This factor is multiplied by the written premium to arrive with the return premium.

LOS ANGELES, Calif. — Insurance Commissioner Ricardo Lara ordered insurance companies to return insurance premiums to consumers and businesses and provide much-needed financial relief during the COVID-19 emergency.

Be prepared to support your case.

Send documents and a letter explaining why you are not satisfied and make sure you have the figures to back up your argument. Be certain to include your claim number and contact information.

If you still want to cancel the policy, the process of policy cancelation will be initiated. Based on the tenure for which you were insured, the insurance company will deduct the premium amount and send you the refunds. An official cancellation letter/email will be sent to you by the insurer.

The time it takes to get your money back depends on how you choose to get your refund. For example, a direct deposit typically takes around two weeks to show up in your account. It may take longer if the insurance company sends a check since you'll have to wait for it to arrive.

Car insurance cancellation fees

If you cancel at renewal: You shouldn't have to pay any fees. This is called 'lapsing' the policy. If you cancel within 14 days of starting a policy: You may have to pay an admin fee.

Here are the different main types of cancellations are short rate cancellations or pro-rata cancellations, flat cancellations. In comparison to short rate cancellations or pro-rata cancellations, flat cancellation is different, being classified as the simplest and easiest way to terminate an insurance policy.

If you have a GEICO auto insurance policy and decide to cancel it before the policy term ends, you may be eligible for a refund. GEICO's cancellation policy for auto insurance allows policyholders to cancel their policies at any time, regardless of the reason.

Why did my insurance send me a check? ›

What does It Mean to Receive a Check From My Insurance? Receiving a check quickly may mean the insurance company believes you have a strong case and that it will likely be required to pay more than the first offer if you pursue legal action.

Because you'll continue to get invoiced for that premium and if not paid, it will eventually go to a collection agency.

Customers who pay for their policy with a check, through the online portal, or by phone will generally see their refund from canceling a policy after about 12 business days.

Insurance companies aren't interested in helping you get the money you deserve after an accident. They'll do whatever they can to prevent or limit your payout. Many will even deny your seemingly legitimate claim. It's important to consider why insurance companies commonly deny insurance claims.

Make sure there are no gaps in coverage from when your old policy ends and your new one begins. If you're making a switch mid-policy, you may be entitled to a refund for any time left on your policy.

A premium refund is a clause in some insurance policies that grants the beneficiaries a refund to the total amount of premiums paid to date. Depending on the contract and type of insurance, it will grant a refund of the premiums you paid if you die before that term runs out or if you voluntarily end your coverage.

If you have a GEICO auto insurance policy and decide to cancel it before the policy term ends, you may be eligible for a refund. GEICO's cancellation policy for auto insurance allows policyholders to cancel their policies at any time, regardless of the reason.

You should not cancel your insurance policy and coverage on your vehicle until you've canceled your registration with your local DMV. As you plan for how to budget your money surrounding the sale, don't forget that cancelling at the DMV can sometimes come with added costs and fees as well.