Now that ' s a door buster . <| sep |> Most auto insurance policies will allow for refunds and adjustments during the life of the policy in the event you either cancel or change cars , etc . However , there may be fees charged for early cancellation for convenience . But people routinely sell cars and occasionally don ' t replace them with anything . Think moving to New York City where owning a car isn ' t necessary . And many states all states ? ? have mandatory insurance policies , so I ' d think there ' d be an obligation to release you with a refund for a prorated portion of your term . That said , every carrier and every policy could have different terms . I ' d recommend reviewing your policy andor call the carriers customer service department .