However, depending on your state and the time of cancellation, your insurer may charge a cancellation fee. Learn how to get a refund on car insurance. Switching car insurance is easy, but make sure that the coverages, limits, and deductibles in your new policy reflect what you have with your current insurer. While your rate might be lower when a new car insurance company quotes, its protection and claim compliance may not match the standards of your current insurer.
If you decide to change your car insurance company, make sure that there is no interruption in your coverage and remember to cancel your old policy. If you change your car insurance company and find better rates with another insurance company, you may want to cancel your current policy before it expires. Because insurance premiums are determined in part by where you live, you can get a lower rate on your new policy if you move to an area where rates are cheaper, and your insurer can reimburse part of your insurance premium. Keep in mind that if you're moving to another state, you won't have to change insurers unless your insurance company doesn't offer coverage in that state.
When changing car insurance companies, it's usually your responsibility to cancel coverage with your old insurer. You'll receive a car insurance refund for any unused portion of your policy, subject to any cancellation fees that your insurer may charge. If you use an insurance broker for your car policy with Progressive, then you won't have to worry about how to cancel your Progressive auto policy. If you sell your car and buy a new one, you'll still need coverage because most states require drivers to have car insurance.
There's no need to cancel your car insurance after selling a car if you're driving a different vehicle. The only reason that would delay canceling your car insurance in Progressive would be if you didn't include all the required information. If you're a new customer of Progressive, your auto insurance premium will increase after the first 6-month policy period if you file a claim or if traffic violations are added to your driving record during that time. If for some reason you didn't pay your bill for May 1 and you canceled it on May 5, then you'll owe Progressive those 5 days of insurance.
If you're interested in changing your car insurance company, you won't have to wait for your current policy to expire. Since almost every state requires drivers to have liability coverage, you must have a current auto policy with another insurer when you cancel with your current insurer. Progressive charges a cancellation fee of 10% of the premium or a fixed rate in some states, although customers in other states don't have to pay a fee to cancel their auto insurance coverage midway through the policy.