Automatic Termination ~ Insurance Information

If the insurance company offers to renew or continue your coverage and you do not accept, the policy will automatically terminate at the end of the

current policy period. Failure to pay the required premium to renew or continue your policy will mean you do not accept the offer.

If you purchase other insurance on your covered automobile, any similar insurance provided by the initial policy will terminate. The termination will occur on the effective date of the other insurance.

Refunds :

There are two ways of calculating your refund after cancellation, pro-rata cancellation and short rate cancellation.

Pro-Rata Cancellation:

This type of calculation is used when the company cancels your policy. It will generate your refund, without any penalty, for canceling during the policy period.

Short Rate Cancellation:

This type of cancellation may be used when the policy is cancelled by you or by a premium finance company. It will generate your refund minus a penalty for canceling during the policy period. The penalty amount

varies according to the total premium and the amount of time left in the policy period.

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