How do I request a premium refund from my insurer if I cancel my policy before its expiration date in California?

In California, you are legally entitled to a refund for the unused portion of your premium when you cancel an auto insurance policy before its expiration date. You must formally cancel your policy to start the refund process. Here is how to request your premium refund: Step 1: Secure New Insurance First Before taking any action, ensure you have a new auto insurance policy in place. A lapse in coverage is illegal if you own a registered vehicle in California and can lead to higher premiums in the future. Step 2: Formally Request Cancellation in Writing Contact your insurance company and submit a formal, written request to cancel your policy. Do not just stop making payments. Send an email or a certified letter that includes your full name, policy number, and the specific future date you want the cancellation to be effective. This creates a verifiable record. Step 3: Confirm the Cancellation by Phone A day or two after sending your written request, call your insurer’s customer service department. Confirm they have received and processed your cancellation for the date you specified. Ask for a cancellation confirmation number and write it down, along with the date and the name of the representative you spoke with. Step 4: Follow Up on Your Refund Under California Insurance Code Section 481.5, the insurer is required to tender (send) the gross unearned premium to you within 25 days after the cancellation is effective. The refund is calculated on a "pro-rata" basis, meaning you are refunded for the exact number of days remaining on the policy, minus any disclosed cancellation fees. Step 5: Escalate if the Refund is Late or Incorrect If you do not receive your refund within 25 days, or if the amount seems incorrect, contact your insurer immediately. If the issue is not resolved, file a "Request for Assistance" with the California Department of Insurance (CDI) online at insurance.ca.gov or by calling their consumer hotline. Important considerations: Your policy documents will state if there is a cancellation fee. Keep detailed records of all communication, including copies of letters, emails, and notes from phone calls. Note: Simply stopping payments will result in cancellation for non-payment, which can negatively impact your ability to get affordable insurance in the future. Always follow the formal cancellation process. This is general information and does not constitute legal advice. For complex situations, such as a large refund dispute or issues with an insolvent insurer, consult with a qualified California attorney.