Economical InsuranceCancellation Fee Guide
Official short rate table and cancellation fee calculator for Economical (Definity) Insurance policies
Economical Insurance, now operating under Definity Financial Corporation, uses a unique tiered penalty structure instead of the traditional short rate table: 7% for days 1-180, 4% for days 181-270, and 2% for days 271-366. Policies are sold primarily through brokers.
How to Cancel
- 1Contact your insurance broker first
- 2Or call Definity at 1-800-265-8665
- 3Provide your policy number
- 4Identify which penalty tier applies
- 5Get written confirmation of refund amount
Refund processing: 10-14 business days. Broker-initiated may be faster. Cheque by mail: 3-4 weeks.
Enter your premium to see dollar amounts below
Economical Insurance (Definity) Short Rate Schedule
Based on $1200 annual premium
| Days in Force | Earned % | Amount Earned | Refund |
|---|---|---|---|
| 1–30 days | 15.2% | $182.40 | $1,017.60 |
| 31–60 days | 23.4% | $280.80 | $919.20 |
| 61–90 days | 31.7% | $380.40 | $819.60 |
| 91–120 days | 39.9% | $478.80 | $721.20 |
| 121–150 days | 48.1% | $577.20 | $622.80 |
| 151–180 days | 56.3% | $675.60 | $524.40 |
| 181–210 days | 61.5% | $738.00 | $462.00 |
| 211–240 days | 69.7% | $836.40 | $363.60 |
| 241–270 days | 77.9% | $934.80 | $265.20 |
| 271–300 days | 84.2% | $1,010.40 | $189.60 |
| 301–330 days | 92.4% | $1,108.80 | $91.20 |
| 331–365 days | 100% | $1,200.00 | $0.00 |
Tips to Minimize Penalties
- • Watch the tier boundaries — if you're at day 175, waiting 5 more days drops your penalty from 7% to 4%
- • Work with your broker — they may negotiate better terms or find pro-rata options on your behalf
- • Request pro-rata — vehicle sale, total loss, or moving may qualify you for penalty-free cancellation
Need a different insurer? Try our universal calculator
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