You should get back the portion that goes beyond those 10 or so days that you were covered.

To figure this out, divide your premium amount for that term by the number of days in your insurance term. This will give you an estimated “per day” cost of your insurance policy.

Next, divide the “per day” number by how many days you had insurance. Lastly, subtract the estimated cost of those days that you had insurance from the deposit that you paid. This should give you an estimate of how much you can look forward to getting back.

The only thing that would prevent a refund is if your insurance company has a mandatory down payment policy; one that is not refundable, even if you cancel your coverage. You insurance agent should have covered this with you when you first purchased your policy.

If I obtain a new insurance policy on 2/25 and decide I want to cancel on 3/5 ( within 2 wks ) what portion of my down payment for coverage should be refunded to me ?

You should still pay this month, just to be safe. But they shouldn’t have your money for long. Insurance companies are obligated to return unearned premium back to their policyholders. If you sell your car that soon, it sounds like you’ll get a nice check back from your insurance company.

So my car brokedown so I’m selling it cheap, I’m supposed to pay insurance in about a week. Since I paid the first and last month up front does that mean I’d get the remaining balance back or could that just pay for this month?

Most (if not all) states require that you get your “unearned premium” back from the insurance company. So yes, you should get a refund for half the month if you cancel the policy effective mid-month.

If I pay the issurance for every month, what happend if I cancel it in the middle of a month? Can I get a refund?

what you guys are talking about can understand a thing….y u guys are so complecated….

No problem, Raj!

Thanks for the article .. it is so helpful..

Thanks for the clarification, Chris!
I updated the article.