Minimum Retained

This refers to the minimum premium that the insurance company will keep if you choose to cancel the policy.

It is not unusual for a seasonal type of business such as snow removal or landscaping to have a minimum retained that is 50% or more of the total policy cost. This is to prevent a person from only buying insurance during their peak season and then waiting to place the policy again next year

For a personal automobile policy there can be a set amount, an example is $125 per vehicle that will be charged even if you cancel the policy within one week of placing the insurance.

Buyer beware - be careful of what you purchase. Be aware of consequences when you replace a policy as to what you will be penalized for leaving the original company.

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