Auto Insurance Companies That Give Refunds (2022)

In general, auto insurance companies that give refunds are the standard. If you cancel or change your policy mid-term, you should qualify for a refund for the remaining funds. Under very limited circumstances, you may be eligible for a refund if your insurance company cancels your policy. COVID-19 introduced an additional scenario for auto insurance companies that give refunds because of the significant changes in driving habits that occurred mid-policy term for most drivers.

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Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

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Cynthia Lanctot is an insurance professional with ten years of industry experience. Cynthia is licensed in several states, and holds an associate in claims law, as well as a bachelor’s degree in English. Cynthia’s experience includes the New England and Northeast states. She currently works as a liability claims professional and an occasional online contributor.

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Reviewed by Cynthia Lanctot
Licensed Agent

UPDATED: Oct 19, 2021

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A Concise Overview

  • Auto insurance companies give refunds to insureds under certain circumstances
  • If you cancel or change your policy mid-term, you should qualify for a refund; in some cases, you may also be eligible for a refund if your insurer cancels your policy
  • Unusual situations like the COVID-19 pandemic may also mean refunds from auto insurance companies

Which car insurance companies are giving refunds? Does it matter if you have liability coverage or comprehensive insurance?

Read this article to answer your questions about whether car insurance companies are issuing refunds, and if so, under what circumstances.

Before we get into discussing auto insurance companies that give refunds, why not make sure you’re getting the best rate by comparison shopping? You can get started by entering your ZIP code in the tool on this page to get your first free quote.

Do auto insurance companies give refunds?

The short answer is yes; auto insurance companies do give refunds. However, there are some restrictions and requirements for when and how you may qualify for a refund. Keep reading for more.

What are the circumstances under which you might receive a refund?

Most, if not all, auto insurance companies offer refunds to insureds under specific circumstances. There are three main ways in which you might qualify for a refund from your auto insurance company:

  • You cancel auto insurance mid-term – in this case, you’ll receive a refund for the remainder of your policy term, minus a cancellation fee (though some companies don’t charge a cancellation fee, so you’ll have to confirm whether or not this will be applied); the refund amount will also depend on whether you’ve paid your policy upfront or per month
  • You change your auto insurance policy mid-term – if you make a change to your policy mid-term that results in a lower rate (like taking someone off your insurance), you should receive a refund that reflects the rate change for the remainder of your policy; some insurance companies don’t automatically refund you because they apply the extra funds to your next insurance bill (if you’d have rather a payout, you can call your insurance company to request this)
  • Your auto insurance company cancels your policy – if your insurance company cancels your policy because of a change in your perceived risk (i.e., something occurred that increases your perceived risk level like a DUI or other significant driving infraction), you may qualify for a refund for the funds you’ve paid out that cover the remainder of your policy

It is important to note that if your insurance company cancels your policy due to a late payment, you won’t qualify for a refund.

Every insurance company has different policies regarding refunds, mid-term policy changes, and cancellations. You’ll need to speak with your insurer to find out the specifics of your policy.

Are auto insurance companies still offering COVID-19 insurance refunds?

During the first several months of the COVID-19 pandemic, insurance companies were offering refunds and discounts because of the sudden and dramatic change in driving habits of insureds, which resulted in significantly fewer miles driven, less traffic, fewer accidents, etc.

Insurers have also been willing to work with insureds who lost their jobs or faced other pandemic-related financial issues that inhibited their ability to pay their premiums.

This assistance included temporarily postponing canceling policies for unpaid bills and waiving late payment fees.

However, most companies have finished paying out any refunds for COVID-19-related auto insurance issues, though some states require companies to continue providing relief by not canceling policies for unpaid coverage, etc.

If you believe the change in your driving habits will be long-term, one way to save money is to work with your insurer to modify your policy to reflect your current driving habits.

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Are there auto insurance companies that don’t give refunds?

Auto insurance companies typically give refunds for the three scenarios we described earlier and in unique situations like the COVID-19 pandemic. It’s unlikely that you’ll encounter an insurance company that doesn’t give refunds for one of these circumstances.

However, in recent months, evidence has come to light that insurance companies may not have paid out enough in COVID-19 refunds. In fact, according to NPR, drivers who received refunds may be owed an additional $125 per vehicle.

Suppose you never received a COVID-19 refund that you believe you were supposed to (or you don’t think you’ve received the total amount you’re owed).

In that case, you can reach out to your insurer to find out more about how the company is handling pandemic-related refunds and whether you qualify.

Auto Insurance Companies that Give Refunds: The Bottom Line

Auto insurance companies typically give refunds if you change or cancel your policy mid-term and if your insurer cancels your policy (but only under limited circumstances).

You may also have qualified for COVID-19 pandemic-related refunds due to the change in driving habits that resulted from the pandemic.

Whether or not you qualify for a refund from your auto insurance company, you can still save on your rates by comparison shopping to get the best coverage at the lowest price for your needs and situation.

Now that we’ve answered your questions about auto insurance companies that give refunds, why not use your ZIP code in our tool to get a free quote and start shopping for affordable insurance right now?

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