Is There a Fee to Cancel Progressive Insurance?
Last Updated on October 16, 2020
If you want to cancel your Progressive auto insurance policy, then you may be concerned about a cancellation fee.
Fortunately, Progressive does not charge a cancellation fee for auto insurance – nor do most of Progressive’s competitors. Progressive might charge a cancellation fee in certain states based on state law, although most drivers pay $0 to cancel their Progressive auto insurance policy.
Today, we’re explaining everything you need to know about canceling your Progressive auto insurance policy.
Progressive Does Not Typically Charge a Cancellation Fee
In fact, Progressive may offer a pro-rated refund on any premiums you’ve paid but haven’t used. If you paid for car insurance up to August 31, for example, and are canceling your policy on August 15, then you may receive a refund on the two weeks of unused insurance premiums you paid.
State insurance laws vary widely, and Progressive may charge a cancellation fee to certain drivers in certain states.
Some Progressive customers report being charged 10% of their outstanding premiums, for example, while others pay a flat-rate fee.
Most drivers, however, pay $0 to cancel their Progressive auto insurance policy.
How to Cancel your Progressive Policy
Progressive, like most insurance companies, requires you to contact an agent to cancel. You must contact Progressive and speak with an agent to cancel your policy.
Your Progressive agent will be able to explain any cancellation fees or other cancellation terms upfront. Some agents may also offer discounts or added coverage without penalty. Others match your new insurance policy’s price or coverage in an effort to retain you as a customer.
You may need to submit written notice of your cancellation to your insurance agent to complete the process. Some states require written notice of insurance policy cancellation, while others do not.
When to Cancel your Progressive Policy
Progressive, like most insurance companies, lets you cancel your policy at any time. Many drivers cancel their policy before renewal, although you can cancel your policy whenever you like – even in the middle of your policy.
Some drivers cancel Progressive auto insurance because they’re unsatisfied with coverage. Others cancel Progressive because they found cheaper rates elsewhere.
Many drivers shop around before their auto insurance policy renews. If you found cheaper rates from another insurer, for example, then you might switch to that new insurer after canceling your Progressive policy. You call Progressive and cancel the automatic renewal, then start your new policy the same date your old policy ends.
How to Avoid a Lapse in Coverage
A lapse in insurance coverage can leave you dangerously uninsured. Driving without insurance is illegal in most states. If you’re caught, you could pay a fine or penalty. If you cause an accident, then you may need to pay all accident-related costs out of pocket.
To avoid a lapse in coverage, make sure your new auto insurance policy starts the same day your Progressive policy ends.
Typically, auto insurance policies end at 12:01 AM on the date of cancellation. That means your new auto insurance policy must start on that same date.
If you cancel your Progressive auto insurance policy on August 15, for example, then your new auto insurance policy should start on August 15 to avoid a lapse in coverage. If your new auto insurance policy starts on August 16, then you have a 24-hour lapse in coverage, leaving you uninsured for that period.
If you’re canceling your Progressive auto insurance policy because you no longer drive, then you don’t need to buy a new auto insurance policy or avoid a lapse in coverage. However, some drivers maintain continuous auto insurance coverage regardless to avoid higher premiums or to keep car insurance when driving a rental car or friend’s vehicle.
How to Receive a Refund on Progressive Auto Insurance
If you prepay your car insurance, then you could receive a refund. Generally, insurance companies provide a pro-rated refund for any unused dates.
That refund is based on the specific date you cancel. You pay for insurance up to that date, then receive a refund on any unused premiums after that date.
You only receive a refund if you have prepaid for your Progressive auto insurance policy. If you have not paid for your premiums in advance, then you will not receive a refund.
Progressive Cancellation Fees
Most drivers pay $0 cancellation fees with Progressive. However, drivers in some states may need to pay a small fee – typically equal to 10% of remaining premiums.
Each state has different insurance laws. In some states, insurers are permitted to charge a cancellation fee – so they charge a fee.
Let’s say you cancel your Progressive auto insurance policy on August 15. Your policy was set to end on September 30. You have $250 of premiums remaining on your policy. You could be required to pay a 10% cancellation fee or 10% of your remaining premiums.
If you already paid for those premiums, then you will receive a pro-rated refund (minus the cancellation fee in certain states).
If you have not paid your premiums, then you will not receive a refund on your premiums, although you may need to pay the cancellation fee.
Ultimately, Progressive cancellation fees are rare, and most drivers never pay a Progressive cancellation fee. Check with your Progressive agent, however, to see if your state has unique auto insurance cancellation laws.
Final Word on Canceling Progressive Auto INsurance
Most drivers pay $0 to cancel a Progressive auto insurance policy. Drivers in some states may need to pay a fee equal to 10% of the remaining premiums, although most drivers pay no cancellation fees whatsoever.
In fact, many drivers receive a refund on their Progressive policy. If you prepaid your premiums, then you could receive money back from Progressive for any unused premiums for which you’ve paid.
Like most other insurance companies in the United States, Progressive lets you cancel your policy at any time without paying a cancellation fee. To cancel your Progressive policy, just contact your Progressive agent.