Days Used / Total Days
0 / 0
Policy duration
Percentage Used
0%
Time elapsed
Earned Premium
$0
Premium already consumed
Unearned Premium (Before Penalty)
$0
Refundable portion
Net Refund Due
$0
Amount to be returned
Additional Amount Owed
$0
If paid less than earned
📌 Insurance Proration Methods:
• Pro-Rata: Refund = (Unused Days ÷ Total Days) × Premium — Fair, no penalty
• Short Rate: Refund = Pro-Rata Amount × (1 - Penalty%) — Penalty for early cancellation
• Typical Short Rate Penalty: 10% of unearned premium
• Minimum Earned Premium: Many policies have a minimum earned premium (often $50-100)
• Administrative Fees: May be deducted from refund (non-refundable)
• Use Pro-Rata for mid-term changes (adding/removing vehicles/drivers)