Your 14 day cooling off period
By law, you have a 14 day cooling off period when it comes to buying car insurance. The 14 days starts from when you receive your insurance paperwork. Within that time, you can cancel your policy and you should receive a refund minus any days that the policy was active for. You may also be charged an admin fee – this will differ according to provider so check your terms and conditions.
If you need to cancel after the 14 day cooling off period, you can still do so, but you’ll probably have to pay a cancellation fee on top of an admin fee.
If you’ve paid your premiums for the year in one go then you should be entitled to a refund for the time you have left on the policy (so if you cancelled after three months you could get a refund on nine months, less any fees).
If you’re paying your premiums monthly and you cancel after the 14 days cooling off period, then you may not get a refund. You may also have to cough up extra money to pay for the time your policy did cover you for on top of any cancellation and admin fees. There’s also a chance you could lose a year’s NCD – so it’s worth checking the small print.