Prorated Insurance Refund Calculator

About this calculator

A prorated insurance refund is the portion of a paid premium returned to a policyholder who cancels coverage before the end of its term, calculated as (remaining days in the term ÷ total days in the term) × premium paid, minus any flat cancellation fee the insurer charges for early termination. Proration ensures the insurer keeps only the premium that corresponds to the coverage period actually provided.

This calculation applies whenever someone cancels auto, home, renters, or travel insurance mid-term — for example, after selling a car, switching insurers, or ending a lease early — and insurers are generally required by state regulation to refund unearned premium on a pro-rata basis (short-rate cancellation, which applies an additional penalty beyond simple proration, is used by some insurers but pro-rata is the more common and more favorable method for the policyholder). Consumers use this math to check that a refund check from their insurer matches what they are actually owed.

This calculator takes your total premium, the total policy term, days remaining, and any cancellation fee, then returns your prorated refund amount, so you can verify it against what your insurer sends you.