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Car insurance cancellation fee and other costs. Unfortunately, some car insurance companies may charge a special "short rate" cancellation penalty if you cancel in the middle of a policy term, so be sure to ask before you switch.
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State officials often allow licensed insurance companies to charge a fee to cover the administrative costs associated with canceling a policy early. When this type of fee is charged, it will be fixed and it will range between $25 and $50.
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