Reader’s Question:

Hi I’m Warren and I want to know how long do I have to wait for a refund when I remove a vehicle from my insurance policy, and the premium has been paid in full for the year? I live in Orlando, FL.

Wallace

Orlando, FL

The period of time in which you should receive your refund from a car insurance company for removing a vehicle from your policy will generally be dictated by state statutes or laws. Many states require car insurance companies to send you a refund for their unearned premiums within 30 days.

For instance, Florida has state statute 627.7283 which says that the unearned premium must be returned within 30 days of the insurance company’s receipt of the written request for cancellation, or the company must pay interest at the rate of 8%. If a premium finance company is involved, the insurance company is responsible to refund to the premium finance company within 30 days.

To find out what law your state has set forth regarding car insurance refunds you should check with your state’s insurance regulatory agency.