If you have recently purchased an auto insurance policy, you may have been wondering how to get a refund. In fact, the process is easier than you think, and you can even get a refund through direct deposit to your bank account. Then you can apply that money toward other insurance policies, such as an emergency fund or credit card. You can also use your refund to reduce payments due in May and June. Here are a few tips to help you get your money back in a timely manner.
First, find out if you’re eligible. Most car insurance companies automatically send a check or direct deposit to the driver in the mail after the renewal of your policy. If you qualify, you should have received a check within two weeks or less. Otherwise, your refund may take longer. Make sure you confirm your current address and banking information to avoid any delays. Also, be wary of scammers who call consumers and attempt to obtain personal information. If you receive a phone call that seems suspicious, hang up and call your insurance company.
The method in which you pay for your insurance is also important. Some insurers give you a lower rate if you pay in full. However, if you’ve already paid in full, you’re likely to have to pay a cancellation fee to get your refund. If your insurer offers you a higher refund, you’re probably going to want to opt for this option. This way, you can save money on your auto insurance policy.
Farmers is another insurer that offers refunds. The Texas-based auto insurance provider offers a 15% reduction in your premiums in April and May 2020. You can also get a $25 payment for policies in effect as of March 31st or April 30th, 2020. Geico, Hanover, and Hartford all offer a 15% credit on your next policy term. These offers are good news for drivers who are experiencing financial hardship. But before you start shopping for new coverage, consider getting a refund.
Another way to get a refund on your car insurance is to cancel your policy. You can either notify your insurer or cancel yourself. Depending on the insurer’s refund policy, you can expect to get your money back within a few days. If you’ve made no changes to your vehicle during the last month, your insurer will most likely take that amount from your refund. However, if you’re cancelling mid-billing cycle, you stand the best chance of receiving a refund.
The state of Michigan is also allowing consumers to get a refund of $400 or more. This is a result of a bipartisan auto insurance reform law that included cost controls, consumer protections, and savings for the state. The result: the state now has $5 billion in excess funds for refunds to insurance customers. This money has been earmarked for recouping the costs of auto accidents and catastrophic crashes. However, some car insurance policyholders are frustrated with the slow reimbursements.