Insurers will generally reimburse you for the unused portion of your policy, assuming you paid in advance. 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. If the insurance company cancels your policy, you'll normally get a refund from car insurance, unless they cancel the policy for non-payment.
If payment doesn't occur, you won't receive any refund and you'll continue to owe the insurer any unpaid premiums. Canceling Progressive Insurance may result in you having to pay certain fees, but in certain situations, you may not have to pay any fees. The service's website states that there are no cancellation fees, but you may not receive a full refund either. 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.
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. If you decide to cancel your policy or your insurance company cancels it, you usually won't receive a refund from car insurance unless you've paid the premium in advance. In general, some factors affect the amount you have to pay to cancel your Progressive insurance coverage. Most of the time, the auto insurance rate increases as a result of increased insurance risk for the policyholder.
If you're a new customer of Progressive, you'll notice that your auto insurance premium will increase after the first 6-month policy period, especially if you file traffic violations or a claim to be added to the registry in the meantime. The ideal would be to change insurers only at the end of the current policy period and make sure that, before you cancel Progressive Insurance, you already have a new policy. 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. Ideally, you have already decided on a new policy before canceling if you still want to drive your car.
At the same time, you should keep in mind that if you didn't choose another policy before canceling, you still shouldn't get rid of your car insurance if you still want to drive your vehicle. If you're thinking about canceling your Progressive insurance policy but don't know when you should, don't rush. If you sell your car and buy a new one, you'll still need coverage because most states require drivers to have car insurance.