Yes, it is possible that you may be charged a cancellation fee or a different pro-rated calculation by your old insurance company if you choose to cancel your policy with them and go with a different insurance carrier after starting your 6 month policy.

Cancellation fees can differ depending upon the insurance company which your policy is through and state laws. Typically, there is no fee for cancellation except if it is cancelled at the insured’s request; at that point it is typically a short rate cancellation. Basically, if the policyholder requests the cancellation of the policy he or she will lose 10% of the unused premium.

A short rate cancellation is defined on our Insurance terms page as a policy termination in which the refunded premium is not proportional to the amount of time remaining in the policy period due to the fixed expenses incurred by the company. The insured will generally pay more for each day of coverage than if the policy had remained in force throughout the entire policy period.

Here is an explanation of short rate cancellation that may help you understand better. When the policy is terminated prior to the expiration date at the policyholder's request the earned premium charged would be more than the pro-rata earned premium. Generally, the return premium would be approximately 90 percent of the pro-rata return premium. However, the company may also establish its own short-rate schedule.

Normally the cancellation of an auto insurance policy and the type of fee associated with it is regulated by each state and its own statute or laws so you should check with your state's insurance regulator to find out what cancellation fees insurance companies may be allowed to charge. If you have already changed your car insurance policy from one insurer to another than your previous insurance company's agent could also explain to you their cancellation fees.

If you are looking to purchase a 6 month policy for your vehicle, then start here with us to get an affordable insurance quote.