Yes – it could cost you to cancel your insurance policy if you’re cancelling mid-policy. This depends on your provider. The fee your insurance company will charge is based on how far along you are into your policy term (this is known as a
Most insurance companies will charge you around 2 to 7% of your premium (usually they’ll take the higher percentage amount if you’re at the start of your term). On an average home policy of $800 a year, the cost to cancel your policy would be around $16 to $56. On the average auto policy of $1,600 a year, it would cost around $32 to $112.
You don’t have to wait until it’s time to renew – cancelling your insurance mid-term may be easier (and cheaper) than you think. Find out how much it could cost to switch today: