What about cancelling mid policy?
If you decide to cancel your car insurance once the policy has already started, then the cancellation charges will usually be a lot more compared to cancelling within the cooling off period.
Exact amounts depend on individual providers, but you’ll usually find a list of charges and fees tucked safely somewhere amongst the terms and conditions of your agreement – some insurance providers could charge as much as £50 to cancel, and for telematics policies it can be even higher. You may also be expected to pay admin fees on top of the cancellation charge – so all in all cancelling mid policy could be a hefty burden on your wallet.
If the reason for cancelling is because you’ve found a better deal elsewhere, make sure you’ve considered all the fees you’ll be charged because they could swallow up any potential saving. If that’s the case, you might be better off waiting until your policy ends and then switch.
If you’ve paid your whole premium up front, then your refund will typically be calculated on a pro rata basis, so you’ll get some money back with deductions made for the time you’ve been covered. If you’ve paid in monthly instalments, then any refund will depend on when you’ve paid up to and you may even end up paying your insurance provider to include all the time you’ve been covered up to that point.
If you do cancel mid policy, you’ll forego that year’s no claims bonus (NCD) too because your NCD is only awarded for a full year.