Can Car Insurance Charge Cancellation Fee? 
It may be possible for a car insurance company to `` short rate '' your requested cancellation which means that they would retain a certain small percentage above and beyond what has been fully earned for the term and refund you the balance . That had been a more common practice years ago but for the most part , that does n't happen too much any more . For the most part , your policy would be cancelled as requested and the appropriate refund of any pre paid premium returned to you without any additional charge . Naturally , the amount of refund would be determined by the amount you had pre paid or the term and where you happen to be in that term . 