A guide to car insurance cancellation fees

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Nobody likes cancelling agreements or appointments, it’s inconvenient and you can feel a little bit rude doing it. But sometimes needs must, and if you’ve got a car insurance policy that you decide to cancel, it’s good to know where you stand and what your rights are.

Frequently thought questions

When you make a decision, you if you’re a bit too hasty you might not think of the consequences until it’s too late. So, when it comes to cancelling something like your car insurance – what should you think about? Here are some frequently thought questions (and their answers) to help you:

Can I cancel my car insurance policy?

Yes. A typical car insurance policy will last 12 months but you can cancel it at any time; but bear in mind that just because you’ve cancelled it, doesn’t mean you’ll automatically get your money back.

What is a car insurance cooling off period?

When you buy car insurance, by law, you have a 14-day cooling off period. The 14 days start from when you receive the paperwork. If you cancel within this period, then you are entitled to a refund minus any days that the policy was active for. You might be charged an admin fee but this will differ according to your insurance provider so make sure you check your terms and conditions. If you decide to cancel after your 14-day cooling off period, you can still do so but you’ll probably be charged a cancellation fee as well as an admin fee.

Does it matter why I want to cancel my policy?

Not really – it’s entirely up to you whether you decide to cancel your policy, just make sure you’ve properly thought about it.

If you’ve found a better deal elsewhere then consider any cancellation or admin charges you might face. It could be that those fees rack up and swallow up any refund you’re likely to get; which in turn might mean that the great deal elsewhere isn’t worth it.

If lucky enough to have bought a new car and think you have to cancel your existing policy, hold your horses (or your new car keys) because insurance providers will simply update your existing policy. But bear in mind that your insurance premium could go up or down depending on what that new car is and there is typically an admin charge applied for making the change.

Can I cancel my car insurance if I’ve made a claim?

Yes, you can but if you’ve paid upfront you probably won’t be eligible for a refund and if you’ve been paying your premium monthly then you’ll still have to pay up for remaining time you have on your policy – or you could pay it off in one go. The same applies if your car’s been written off – you either won’t get a refund or you’ll have to pay for the rest of the policy in a lump sum. 

Can I cancel my car insurance mid-policy?

You can, but take a moment to think about what the consequences of cancelling your policy will be – some things to think about include cancellation costs and no claims discount:

How do I cancel my insurance policy for my car?

You need to tell your insurance provider that you want to cancel. Insurance providers have their own procedures for cancelling and you’ll find these in your contract, they’re there for a reason and it’s important to follow the guidelines set out for you. You might also be expected to inform your insurance provider in writing – which could be in a letter or on email.

If you do speak to someone and cancel it on the phone, make a note of the time, date and the name of the person you spoke with (because mistakes do happen sometimes). In this situation, it’s also worthwhile just following up the conversation in writing too.

How can I start comparing insurance for my car?

All you need to do is use our car insurance comparison service and tell us a bit about you, your car and what you need and we’ll take it from there. Our easy to read tables mean you can see at a glance who’s got what on offer, leaving you in the driving seat when it comes to choosing what’s best for you. So, compare to day and see how much you could save.

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