Insurance Cancellation Refund Calculator
Estimate a pro-rata insurance cancellation refund or check a provider’s retained premium against what you paid. See unused days, separate charges and any balance owing.
Check your cancellation figures
For car, home, tenant and business policies. This worksheet checks the arithmetic; it does not decide which cancellation terms apply to your contract.
Your cancellation worksheet
Enter valid dates, the full-term premium and the premium already paid to see the result. Provider mode also needs the confirmed retained premium.
Balance = premium paid − retained premium − additional unpaid charges. A positive balance is a potential refund; a negative balance is an amount still owing.
This is a premium-accounting scenario. Tax refunds, financing balances, previous refunds and other adjustments are not calculated. Ask for an itemized final statement.
Enter valid values to download or print your calculation. The file is created on your device.
Figures stay in this page’s calculator. Download or print a report if you want to keep them.
How to calculate an insurance cancellation refund
Pro-rata retained premium = full-term premium × days used ÷ days in the term, rounded to cents. Unused premium is the full-term premium minus that rounded amount.
Balance = premium paid − retained premium − additional unpaid charges. A positive balance is a potential refund; a negative balance is an amount still owing.
A pro-rata amount is a reference, not a promised refund. Short-rate terms, minimum retained premiums and policy adjustments can change the actual result.
Worked example: unused premium is not always the refund
A sample policy runs from January 1, 2026 to January 1, 2027, with cancellation effective July 1, 2026. There are 365 days in the term, 181 used and 184 unused. On a $1,200 premium, the pro-rata retained amount is $595.07 and the unused amount is $604.93. If all $1,200 was paid and an extra $25 charge is still due, the scenario refund is $579.93. These are arithmetic examples, not insurer rates or terms.
What to ask for before cancelling
- The exact cancellation date and time, plus written confirmation that replacement coverage is active if you still need it.
- The total retained premium, including any short-rate or minimum-premium adjustment, and a separate list of charges.
- The premium payment record and itemized final refund or balance, including any tax or financing adjustments.
Questions about cancellation refunds
Does this calculate my insurer’s short-rate cancellation penalty?
No. There is no universal short-rate table in this tool. Ask the provider for the total premium it will retain for your cancellation date, then choose the provider mode. An adjustment already inside that total must not be added again as a separate charge.
Can I still owe money if I pay monthly?
Yes, the payment schedule and the premium retained for the elapsed period are different figures. For example, $500 paid minus $600 retained leaves $100 owing before other adjustments. Enter amounts actually paid, not the full annual amount unless you paid it.
Can I use this for home, tenant or business insurance?
The arithmetic works with matching premium and payment figures for those policies too. It does not select their cancellation method or model audits, policy changes, taxes or financing. Use the written settlement for the relevant policy.
Is a lower new premium enough reason to switch immediately?
Compare the cancellation settlement, the new policy’s complete cost and the coverage for matching dates. A refund from the old policy is not, by itself, savings from switching. Use the quote comparison calculator and the switching checklist together.
Sources and calculation limits
IBC advises checking fees before ending a policy early. As a jurisdiction-specific example, Ontario’s July 2026 OAP 1, section 1.7.1, uses short-rate premium for policyholder cancellation and may retain a stated minimum. Those Ontario terms are not a rule for every Canadian policy.
Formula and sources checked September 30, 2026.