A lapse in coverage can make it difficult for you to take out insurance in the future and can result in higher premiums.
GEICO car insurance · Car insurance rate increases. Your insurance company can issue a refund if your policy is canceled and you have paid your premium in advance. Receiving an insurance refund will largely depend on the reason you canceled the policy and the amount of the premium you paid in advance.
If you pay the full premium up front, you'll usually get a refund when you cancel your policy. If you pay your premium monthly, you may or may not receive a refund depending on when you cancel. 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 sell your car and buy a new one, you'll still need coverage because most states require drivers to have car insurance.
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. Insurance refunds are usually issued through the same payment method that you use to pay for your insurance. 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. If the insurance company cancels your policy, you'll normally get a refund from car insurance, unless they cancel the policy for non-payment.
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 cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. 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.