Where your money actually goes back from

1. The starting point

Insurance Plan Center does not charge you for anything on this site, so there is nothing here for us to refund. Premiums are collected by the insurance company named on your policy, and cancellation rules, cooling-off rights, and fee treatment are set out in that company's contract and in the law of the state the policy was written in.

2. What usually earns money back

The common reasons a premium comes back, in the order we see them:

• A policy cancelled part way through. Most companies return the unused portion, worked out as a proportion of the term rather than as a flat amount.
• A change that reduces the cover. Removing a vehicle, lowering a limit, or dropping an add-on usually produces a credit for the difference.
• A duplicate payment. Two instalments taken, or a second policy written when you only wanted one. This should not happen, and if it does it is corrected in full.
• A policy cancelled and replaced elsewhere. Some companies charge a fee for cancelling early, and where they do, the fee is theirs to explain and usually comes out of the return rather than being billed to you separately.

A cooling-off right exists in some states and for some products, on a short window, and it does not automatically apply everywhere. If you think yours applies, say so early rather than assuming.

3. What normally does not come back

• Time already covered, where a claim has been paid under the policy
• Fees the company charged for issuing or cancelling, where the contract says it can
• Cover you used and then cancelled, since the risk was carried during that period

4. How long it takes

A company usually decides a cancellation within a few business days and pays out within roughly two to four weeks, because the money has to travel through their accounts and then yours. Some companies pay by cheque, others by card or transfer, and a few will only refund to the original payment method. The company that took the money is the one that sets the timeline, and we will not invent a shorter one to make this page read better.

5. What to send us so we can help

The more of this you send, the faster we can get to the right desk:

• The name of the insurance company that issued the policy
• The policy number, and the date the cover started
• What you want changed or cancelled, and the date you want it to take effect
• Anything already refunded, so the same request is not processed twice

We will point you to the correct department and, where a mistake looks obvious, say so in writing. We cannot issue the refund ourselves, because the money was never ours.

6. If a company does not respond

Give it a reasonable window first, in writing, and keep a copy. If it stalls, the insurance department for the state that issued the policy handles consumer complaints, and our licensing page shows you how to find that department and look up the company while you are there.

7. Talk to a person about a specific case

Billing questions are easier when you can see the actual figures, so ring during Mon-Fri, 8:00am-6:00pm Eastern and have the paperwork nearby: