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.

There is some wring information here. You must cancel the policy on the same day your new one starts. A cancellation is effective at 12:01 AM, i.e. if you cancel your policy Feb 24th, and your new insurance starts Feb 25th, you will not have insurance for that 1 day.