
(California Auto Insurance)
Cancellation Type: Policy are cancelled and calculated on a 10% short rate basis. This means the carrier will charge/retain premium for each day the policy is inforce plus 10% of the unearned premium.
Example- If a 12 month policy with a premium of $2000 is cancelled 6 months into the term. Then the 6 month earned premium of $1000 will be charged plus 10% of the unearned premium (10% of $1000 is $100) - Total charges equal to $1100
Backdate Cancellation: Mercury/Cal Auto Insurance does not allow backdated cancellations unless there is proof of duplicate coverage.
Cancellation Fee: There is no additional cancellation fee, policy is subject to the short rate cancellation formula.
Minimum Earned Premium: There is no minimum earned premium rule, any unearned premium is simply refunded based on short-cancellation.