Insurance Glossary

Pro-rata refund

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is pro-rata refund?

A pro-rata refund returns the portion of premium covering the time left on a policy you cancel mid-term, calculated in proportion to the days remaining. Some cancellation fees or short-period rates may apply.

Example

If you cancel comprehensive cover halfway through a paid year, you may receive a pro-rata refund for the remaining months.

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