Do you have to pay the rest of your auto insurance premium if you cancel and get new insurance with another company?
Do you have to pay the rest of your auto insurance premium if you cancel and get new insurance with another company?
byu/Sniper_Snippet inInsurance
Posted by Sniper_Snippet
3 Comments
You have to pay for the days the policy is active. So if your policy issued for six months and you switch at month five, you owe them five months but not the sixth.
when you call and cancel the old policy, they’ll calculate what you owe to them or what they owe to you depending on how much you’ve paid vs how long your policy was active
if you don’t pay it, most carriers send you to collections
There are insurance companies that may ask you to pay the rest of your insurance premium depending on the policy you took. I do suggest that you call your insurance company for clarification. Also, check the paperworks given to you when you took the policy.
Cause if one assumed they don’t need to pay anymore as they have switched to another insurance company, the insurance company might send your accounts to collections.
Your auto policy will cancel “Pro-Rata” or “Short-Rate” depending on company and location. Pro-Rata=full refund of unearned premium. Short-Rate=carrier charges you a % of the unearned premium