Prorated insurance

**Prorated insurance**

Prorated insurance refers to the calculation and adjustment of insurance premiums based on the exact coverage period instead of a full policy term. This means that if an insurance policy is started or canceled partway through a billing cycle, the premium will be proportionally determined for the time during which the coverage was active. Prorated insurance is commonly applied to various types of insurance policies, including auto, health, home, and renters insurance, ensuring fair charges or refunds for policyholders.