If I terminate my auto insurance before the policy end date, do I get any refund?

Question

I'm switching to another insurance with cheaper rate before my current policy ends. Will they prorate the premium and give me back a refund?

Answer 1

Be sure to cancel your old policy.  Just taking out a new one doesn't cancel the old one.

The old company will either cancel the policy with a standard pro rate calculation or a short rate calculation.  Either way you will get some money back if you have prepaid the policy.  The difference is that short rating is basically a cancellation fee of 10% of unearned premium.  That means that if you had $100 coming back, they would keep $10 and send you $90.

Answer 2

They should yes. The company I was using before did.