2007-01-20 04:41:07 · 15 answers · asked by Carrot Cruncher 5 in Business & Finance ➔ Insurance
If you paid the whole 12 months in full, then you are entitled to a partial refund . . . usually the 9 months premium, LESS a short rate cancellation penalty, and sometimes a flat cancellation charge.
If you only paid some of the premium, then you actually could end up owing THEM money.
2007-01-20 08:23:34 · answer #1 · answered by Anonymous 7 · 0⤊ 0⤋
Why would someone answer "don't know mate"? How is that helpful?
Whether you get a refund depends on where you are, how much premium has been earned and how much you have paid. When an INSURER cancels your policy, they must calculate the earned premium on a "pro-rata" basis, which means they take the number of days the policy has been in force, divide by the number of days in the year and then multiply it by the annual premium. If YOU cancel the policy, then the earned premium is calculated on a "short rate" basis. It's similar to pro-rata, but the percentage is higher i.e. under a pro-rata basis an annual (365 day) policy is 50% earned after 183 days. Under a short rate basis it's possible that, after 183 days, 60-70% of the premium has been earned. It varies by jurisdiction, so you will have to consult with your broker/agent as to what the actual percentage would be. The higher percentage is allowed because it is you who is breaking the contract. Whether you are entitled to a refund depends on how much premium you have actually paid. If you have paid the entire year's premium, you would be entitled to a refund since the policy has been in force for such a short time. If you are paying by installments, it depends how much the earned premium is calculated to be. It's quite possible that you may owe money if the earned premium is higher than what you have paid so far.
2007-01-20 07:20:11 · answer #2 · answered by Gambit 7 · 0⤊ 0⤋
Most companies are fine with people cancelling midway through pay monthly policies. Normally the only issue is that you'll not get your 1 years no claims bonus. But as that doesn't seem like an issue... Then depending on the company you'll be ok to cancel but may have to pay a small charge. Either say, finish paying the month your cancel or a reduced figure generated by the company. Best way to find out, daft as it sounds is just to ring them up and ask. (Remember cancellations will always try to make you stay as well! Prepare for a battle)
2016-03-29 06:14:59 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Usually you are entitiled to a portion of the funds back assuming that you paid in full and not by monthly installment.
You will probably be charged a cancellation fee, and an administration fee etc so don't expect 9 months premiums back.
2007-01-20 04:57:39 · answer #4 · answered by angie 5 · 0⤊ 0⤋
expect to get refund of 3/4/5 months premium depending on the company
2007-01-20 04:48:41 · answer #5 · answered by alan t 3 · 0⤊ 0⤋
If you have paid one year's policy cost and you cancel within 3 months you should be entitled to the unexpired period of cover, less an administration cost. I.e. you can receive up to 75% of you costs back.
2007-01-20 05:05:22 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes you are, but you may have to pay for what is called time on risk. You have to surrender your insurance certificate before you can have a refund.
2007-01-20 05:14:30 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Usually, but it is not as much as you would expect.
It is not on a strict pro-rata basis, you could find yourself paying half of the annual premium for your 3 months cover.
2007-01-20 04:48:58 · answer #8 · answered by David P 7 · 0⤊ 0⤋
Yes but you won't get the full nine months returned - they'll charge you an admin fee.
2007-01-20 04:48:39 · answer #9 · answered by Away With The Fairies 7 · 0⤊ 0⤋
in nigeria, yes, you get a refund calculated on pro-rata basis
2007-01-20 05:28:43 · answer #10 · answered by Jim omo B 1 · 0⤊ 1⤋