There are good news if you have car insurance that you do not intend to use.

This option may include moving or cancelling your policy after you have sold your car. If you have switched insurance companies, you may be eligible for a refund.

* When can you get your car insurance back?

* How to get your car insurance back

* Does cancelling my auto insurance policy incur a cancellation fee?

How can you get your car insurance back?

There are many reasons to get a refund on car insurance. The process can vary depending on your circumstances.

One scenario where you may be eligible for a refund is policy cancellation. You may cancel your policy to stop receiving coverage from your current provider.

You might also seek a refund for any changes to your policy limits or coverage. Your insurer may reimburse you if you make changes to your policy that lower the cost.

Most insurance companies offer coverage for six-month or one-year terms. You may be eligible for a refund if you cancel your policy before the due date.

Cancelling your policy before it expires

You have two options when buying car insurance. You can pay the full amount upfront or choose a monthly payment plan. Your refund amount when you cancel your policy will depend on whether your payment was made in full or monthly.

It is important to note that only the money that you have already paid will be refunded. If you cancel a one-year policy midway through, and you have already paid for the full year of coverage, you might get a substantial refund.

If you cancel a one-year policy and have been paying monthly, your refund might be smaller. Let’s take a look at some scenarios.

* Scenario A $1,200, one-year car insurance policy has been purchased. After four and a quarter months, you have paid the full amount and want to cancel.

* The outcome: If you cancel your car insurance, you might be eligible to receive a refund for any unused portion that you have already paid. This is an example where you have paid for a year of coverage but are cancelling after only four and a quarter months. This means that you are entitled to a refund for seven and a quarter months of coverage. That works out to $750

* Scenario A one-year $1,200 car insurance policy. After four and a quarter months, you cancel your coverage and make monthly payments.

* End result: Monthly payments typically cover a month’s worth of coverage. You pay the first month. This means that you have paid for five months’ coverage, and are cancelling after four and a quarter months. This means that you could be eligible for a 50% refund on your monthly payments, which total $50.

Changes to your policy

If you make a change to your policy in order to lower the cost of your coverage, you may be eligible for a reimbursement.

You may have to reduce your policy limit or the number of drivers and vehicles covered. You may decide to remove a teenager driver from your policy or to drop collision and comprehensive coverage for an older vehicle.

Your insurance cancels your policy

If your insurance company cancels your policy, will you be able to get a refund? It all depends on the reason.

Imagine an insurance company cancelling your policy because you have not paid the required amount. You won’t likely get any money back if your insurance company cancels your policy for nonpayment. This happens because you are past due on your payments. You’ll still owe your insurance past-due premiums in this case.

An insurer may cancel your policy for other reasons. An insurance provider might cancel your coverage if you have recently been involved in an accident or received tickets that change your risk profile.

If you are convicted of DUI, your insurance company could cancel your policy. You may also be eligible for a refund if the insurer cancels your insurance policy for reasons other than nonpayment.

How do I get my car insurance back

What are the steps to receive a refund on your car insurance? Each insurer will have a different process. Sometimes, a simple call to the insurer will suffice.

Geico, for example, allows you to cancel insurance by phone. Your Geico policy number will be required. Make sure you have it handy.

State Farm allows you to cancel your coverage via phone. You will need to give your policy number, name, and date of birth. You may need to show proof of plate forfeiture or a bill of sale if you are ending your auto insurance.

State Farm might ask you for the name of your new insurer, the new policy number, and the effective date. You can also cancel your State Farm coverage in person or by mail. However, the same information will be required.

Allstate may request that you call your agent in order to cancel your policy. They may also ask you to send a written request.

Can I cancel my auto insurance policy without paying a penalty?

Some insurers don’t charge cancellation fees for auto insurance policies. For example, Geico doesn’t charge a fee for early cancellation.

Some insurers will charge cancellation fees. The fee, sometimes called a short rate penalty, is determined by the rules of the insurer.

It is a good idea to call your insurance company to find out if cancellation fees are applicable.

What’s next?

You can cancel your policy, but you do not intend to drive. Instead, you should replace your coverage. You can cancel your current insurance policy as soon as you know the effective date.

Even a very small coverage gap can make you liable for an unfortunate accident. A coverage gap can also lead to higher premiums.