Imagine you are exactly in the middle of an auto or homeowner insurance policy period. So you “used” half of the protection you bought at the beginning of the period. In Insurance Industry lingo, half of what you paid is now “earned premium” while the other half is “unearned premium”. Insurance company can’t keep the “unearned premium” if you cancel the policy, at which point it must issue a prorated refund of your premium. Fair and square.
However, some insurance companies made things more complicated and less consumer friendly than that. For example, in California, Progressive and esurance charges a $50 cancellation fee for auto insurance. Progressive also keeps 10% of the “unearned premium” upon cancellation for motorcycle insurance. The only way to avoid these fees is to switch at end of the policy period. As consumers, stuff like this is probably not worth your energy and brain power. At SafeButler, we are the experts in dealing with all these ugly details. So leave it to us. Simply enjoy savings without having to think about it. After all, we are your insurance butlers. 🙂