Pro-Rata Cancellation

Pro-Rata Cancellation is the fair and standard method of refunding unused insurance premiums. Under this math, if you have 100 days left on your policy when you switch, the carrier refunds exactly 100 days’ worth of the premium with no extra fees. The Insurance Cop advocates for pro-rata refunds because they allow homeowners to move between carriers without financial penalty. Most reputable US insurers use this method, especially when the homeowner is switching due to a rate increase.