Auto Insurance Cancellation Waukegan Illinois IL

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Reader’s Question:

If I cancel my policy in Waukegan Illinois, how would my car insurance company calculate the amount of premium to be refunded?

Scott

Waukegan, IL

Insurance premiums are normally calculated for a full year. If you cancel your policy, refunds are usually issued retroactively. So if you cancel your insurance 6 months into your policy, you will be refunded for the remaining 6 months. It is usually calculated to a daily value, so you will get a refund for the remaining days left in the year.

If an annual car insurance policy is terminated during the first year of cover, short-term premium rates are applied. This means that customers who have paid the premium in full by a lump sum payment are only eligible to a percentage of the paid premium as a refund. Customers paying their car insurance by installments usually owe some money to cover the short-term premium rates. The amount of premium left depends on those rates in force at the time of the insurance policy cancellation and the month in which the cancellation takes place.

However, it is still up to your Waukegan Illinois insurance company on what their refund policy is. Some companies will have a cancellation policy of 1 month’s cost of insurance if you cancel your policy. Many insurance companies however have no cancellation fee.

Tags: auto insurance, automobile