How does switching work when under 6-month contract?

[acurisur]

So I just got a Geico insurance policy and decided to pay in full because it gave me 9% discount which is great.

My question is since I am auto enrolled for the discounts, and suddenly when they decide to price hike for the next policy...

a) do they let you know the price hike well before hand say a month or so?

&

b) If I am paying in full like I did now, and decide to switch say one day within the new term. Will I lose the whole amount paid for the term or is it prorated or something in some way?

 

[yhjmkiop]

@acurisur A) they do send out renewal notices. It’s required by law that they send you the documents well ahead of time telling you what your new rates will be. Doesn’t matter whether you paid in full or are paying monthly.

B) Pretty much all insurers will refund unearned premium (premium paid for coverage days that haven’t happened) when you cancel a policy, no matter how long into the term you are and how long you have left. There’s some rare cases where they won’t, but in standard policies with big carriers they almost always do.

 

[acurisur]

@yhjmkiop Awesome, thank you. Now I can sleep well. You made my day, sir, after having a disappointing dinner.