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.
Thank you for reading the article about Automatic Termination in blog Insurance Information if you want to redistribute this article please include the link as the source is, and if this article useful please bookmark this page in your webbroswer, by pressing Ctrl + D on your keyboard keys.