An Act eliminate penalty charges when canceling auto insurance

This bill aims to protect Massachusetts drivers by removing extra fees when they cancel their auto insurance policies. Specifically, it requires insurance companies to refund the exact amount of prepaid coverage for the days the policy was active, without adding any penalties or administrative charges. The law directly affects policyholders who switch insurers or end their coverage early, ensuring they receive a fair, pro-rated refund. By amending Chapter 175 of the state laws, the measure mandates that insurers provide only the precise value of the coverage used, eliminating hidden costs during the cancellation process.