Florida Auto Insurance - Define Whole Dollar Premium:

Whole Dollar Premium refers to general practice followed by insurance companies where the insurance premiums are rounded off to nearest higher or lower dollar. In simple words, if your insurance premium is $105.32 then it will be rounded off to $105 which means the companies lets go the 32 cents from the insurance premium. However, if your insurance premium is $105.67 then it will be rounded off to $106.

Any amount less than 51 cents is dropped off and any amount higher than that is rounded up to next dollar. The whole dollar premium rule is applicable for each coverage in the insurance policy. The whole dollar premium rule is not applicable to Part 5, 20/40 limits and Part 6, $5000 limits in several States where rates are shown in manual rounded off to lower whole dollar. The whole dollar premium rule (rounding off to completely lower dollar) is applicable to all interim premium adjustments, which includes endorsements and cancellations requested by the insured. However, for cancellations by the company, the return premium is rounded of to next higher whole dollar.

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