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. 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 you prefer not to completely remove your child from your policy (so that it can be demonstrated that your college student has had continuous car insurance coverage in case they want to buy their own vehicle and insurance in the coming years), you should still be able to request a reduction in rates. To cancel a Progressive insurance policy, call (86) 416-2003 to speak with a customer service representative and make arrangements for the cancellation to take effect immediately or at a future date. If you sell your car and no longer need coverage, your insurance company can send you a refund check if your policy is canceled before its term ends.
Car insurance companies consider student-age drivers between 16 and 25 years old to be “high risk,” making them more expensive to insure. 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. 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.
However, another reason why Progressive might increase rates after 6 months is that insurance costs across the market have increased over time. 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. Depending on your insurance company, you may be able to cancel your policy by calling your insurer or agent. If you cancel your policy after just three months, your insurer will issue an insurance refund for the remaining nine months.
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. Remember that each car insurance company has its own rules and guidelines for students, so you'll need to talk to your insurance agent to see what discounts you can apply for and how you can get the lowest possible car insurance rates. So, if your young driver is going to a school that's hundreds of miles away and won't be driving your car for the next nine months, it's time to call your auto insurance agent to discuss the possibility of making some adjustments to your policy to get cheaper car insurance rates. 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.