If you cancel your State Farm Auto Insurance policy, you'll want to know your refund options. If you've prepaid a 6 month or 12 month insurance policy, refunds will likely be available. A month-to-month policy may not be eligible for a refund.
If you've paid for your policy in full, you will likely have no issue getting a refund. If you prepaid for a 6 or 12 month policy, refunds are pretty straight forward.
There are a multitude of reasons why you may be eligible for a refund including removing coverage from a vehicle, removing a driver from your plan, or moving to an area that is at a lower risk.
If you've prepaid for a year, sell a car, and remove it from your plan 2 months before the end of your term, you should be entitled for a refund for those two months.
A month-to-month policy means that you are paying as you go, rather than paying in advance which makes it less likely that you would be eligible for a refund.
If you cancel your policy mid payment cycle than it is possible you would be eligible for a refund. If you make changes to your plan mid cycle, you may be offered a credit to be used towards future billings.
Insurance representatives are there to help. Ask for information on how to get your refund processed. If you are entitled to a refund, your representative will assist you so that the situation is handled quickly and efficiently.
Most insurance providers will reimburse you through your original payment method. If you paid via credit card they will likely refund your payment back to that card.
Some providers may argue against issuing a refund, even if you paid upfront. They may tell you that your refund request violates their company policy. These kinds of providers do not have your best interest at heart, and if you're in this situation, you should consider switching to a new provider.
If you are having trouble getting your refund request approved, research your state laws regarding insurance. Many states allow customer appeals when refund requests are denied by insurance companies.
If you've made the decision to leave your current policy, it is time to start shopping for a new policy. You'll want to start immediately to give yourself the time you need to consider your options.
Where to start?
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