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. For example, let's say the term of your policy is 12 months and you pay the premium for the entire year in advance. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months. Yes, you can cancel your car insurance after selling it once you've transferred the title to the new owner, completed the bill of sale, and filed a notice of exemption from liability to your state's department of motor vehicles, if your state requires it.
If you cancel your policy too soon, you could face legal repercussions, such as high fines or the suspension of your license. Most states require car owners and drivers to have liability insurance coverage, and some require additional coverage even for owners of cars who don't drive. There's no need to cancel your car insurance after selling a car if you're driving a different vehicle. 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 buying a new car, you can contact your insurance company to add your new car to your current car insurance policy. 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. Canceling your insurance will also cause an interruption in car insurance coverage, which may mean higher rates in the future. One very important note to remember: don't cancel your Progressive insurance until your new insurance is paid and in effect.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance 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. If you cancel your car insurance in Progressive on May 15, then Progressive will owe you half of the month. I want to add my son to my Progressive car insurance policy, but the projected monthly rate is way out of budget.
To avoid a break in coverage before buying another car, consider getting an auto insurance policy for people who are not homeowners. Depending on your insurance company, you may be able to cancel your policy by calling your insurer or agent. 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. For example, if a prospective buyer takes the car to a test drive and damages it, your insurance can help pay for the damage.