Is it possible to get back the money(premiums) you've already paid if you cancel an insurance early?

  • by Jay R
  • Aug 03,2018
  • 12 answers

Is it possible to get back the money(premiums) you've already paid if you cancel an insurance early?


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Insurance Answers (12)

curtisports2 2 months ago

Depends on the type of policy and policy language. Paid-up auto and homeowners, yes, if you terminate a policy early due to disposing of the vehicle or selling the home, insurance companies will give a prorated refund for the period you will not be insured. You never get back everything you paid. You WERE covered for a part of the time you had the policy.

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mbrcatz 2 months ago

Just like it's not possible to return your lottery ticket and get your money back after the numbers are drawn and you didn't win, you can't get money back for "time insured" that's already passed. You might be able to get money back for premiums you've paid in advance.

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Flower 2 months ago

No, life insurance premiums are used to cover the risk of death. If you cancel a life insurance policy, thats the end of it.

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ibu guru 2 months ago

IF you bought whole life insurance, and cancel it, you may have built up cash value in the policy, which you can take out when you cancel. That's the purpose of whole life - to build up value.
Any other insurance, there is no refund of premiums paid, except for any prepaid amount which would have covered you until the next premium due. E.g. If you paid homeowner's insurance in one annual premium, then sold the property & cancelled insurance 4 months later, you would get a refund of the advance payment (about 8 months' worth in this example). The insurance covered you, whether you made any claim against it or not, so no refunds. You got the protection you paid for over the period you paid premiums for.

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YYYZZ 2 2 months ago

No. Insurance money is money down the drain until you claim.
Peace.

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Matt 2 months ago

depending on the type of policy, you can get pro-rated for the time that was supposed to be covered after you cancelled.

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Casey Y 2 months ago

Depends on the policy and what you mean by early. If you purchased auto insurance for a full year and cancelled after one month, sure, you get something back.
If you paid for health insurance for the month but want to drop it after 5 days, no, you don't get anything back.

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busterwasmycat 2 months ago

Depends on details. Most insurance that you pay by installments does not get very far ahead in payment so you don't have anything really owed to you when you cancel. And most policies also have a cancellation cost, which is usually about a month or two worth of coverage in price. It is a contract and there are generally some penalties for cancelling a contract early.

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Judy 2 months ago

Yes

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Steve D 2 months ago

Since we are talking PMI, you can't just cancel until you get you equity to 80% (the lender won't let you). PMI tends to be paid monthly into an escrow account. If you can cancel (your mortgage balance falls below the 80% mark), then you can stop the money going into escrow. Money paid prior to this will not be refunded since those premiums were used to keep you policy inplace (doesn't matter if there were claims or not).

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Ricki 2 months ago

It is depending on provider, policy etc.

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Insurance Pickle.com 2 months ago

Totally depends. Even with the same type of policy, some companies may give the premium back as unused. And, others might say that they'll keep your policy in force for the period of time that you paid for and not give a refund. You'd have to ask the company directly.

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