How to cancel car insurance

Are you planning to cancel your car insurance? Get all the details here.

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You you generally cancel your car insurance whenever you decide, but the process and associated costs really depend on when you decide to cancel. If you’ve made up your mind and you want to cancel your car insurance, think about any accidents that could occur before you’ve found a new policy or during the first days of your new policy, when you’re unlikely to be able to make a claim. Don’t find yourself uncovered and out of pocket. Check out our guide first.

Cancellation guides by provider

Each car insurance company has slightly different requirements, fees and processes for canceling your policy. Check out comprehensive guides for canceling your insurance from these popular providers.

Can I cancel my car insurance policy?

You will be able to cancel your car insurance policy whenever you wish but don’t assume you’ll get some money back just because there is unused time left on the policy. You may also find that with a cancelled policy comes a cancellation fee so keep this in mind before deciding to terminate your cover.

What are the consequences of cancelling a policy early?

Here are just some of the consequences you could face for cancelling your car insurance early:

  • No money refunded
  • High cancellation fees
  • Paid-for optional extras may be automatically terminated
  • Missed no-claims bonus

Is there a cooling off period?

All insurers in the UK are obligated to offer a cooling-off period of at least 14 days for car policies. If you cancel during this time and haven’t made any claims, you are likely to receive a refund. But be aware that an insurer can still charge for the days of cover that have already passed as well as a cancellation fee. If you purchased a car insurance policy that hasn’t yet started, you might only be requested to pay a cancellation fee.

How to cancel your insurance policy

Once you’ve decided to cancel your car insurance, you’ll need to get in touch with the insurance provider. The cancellation process may be available within your policy document.
Some insurers may only accept your request for cancellation in writing while other insurers may be happy to handle the cancellation of your policy over the phone or via an email. Once you’ve contacted your insurer to cancel your car insurance through the appropriate channel, it’s worth keeping a record of all correspondence such as the date and time of phone calls, email chains and the names of any representatives you dealt with.

Ready to cancel? Compare cheap car insurance providers

Name Product Courtesy car cover New for old car replacement Drive abroad in EU? Personal accident cover Multi-car discount Policy options
Up to 90 days
Up to £5,000 personal accident cover or up to £7,500 for AA members.
New customers get AA Roadside Assistance for a year from just £15, plus discounts on breakdown cover upgrades.
Up to 90 days
Up to £5,000 personal injury cover
Insure more than one vehicle under the one policy. Every car added will earn its own discount.
Black Box Insurance, Car Sharing Insurance, GAP Insurance
Quotes starting from £248 per year. No claims & MultiCar discounts on offer.
Up to 180 days
Motor Legal Protection, Key Protection, Excess Protection
No upper age limit
Up to 90 days
Cover you or your partner up to the benefit amount outlined in your insurance agreement
If you've got more than one car to insure at the same address, you could save yourself some money on every additional policy
Black box insurance, Young driver insurance
  • Replacement, upgrade or the money in case of write off
  • No-claims discount protected if car is vandalised or hit by an uninsured driver
  • (terms apply)
Up to 90 days
Young driver insurance
You or your partner are covered up to the amount in your insurance agreement.
If you've got more than one car to insure at the same address, you could save yourself some money on every additional policy ( Introductory discount, Minimum premiums apply))
Black box insurance
  • Guaranteed hire car as standard
  • Taxi to get you to your destination if you've been involved in a crash (T&Cs apply)
  • No-claims discount protection (Terms apply)
Up to 90 days
£5,000 of personal injury cover for you and your spouse
Young and first time drivers insurance
Up to 90 days
You or your partner are covered up to £2,000 per person.
Short term car insurance, Young driver insurance
20% off MOT costs and 10% off servicing with comprehensive and third party policies.
Up to 90 days
Optional extra
If you've got more than one car to insure at the same address, you could save 10% on your cover
Multi-car, temporary insurance
Personal accident cover up to £5000.
Learner driver insurance, Young driver insurance, New driver insurance, Student insurance, First time drivers insurance
Up to £200 cover if handbag is stolen child seat cover.
Cover up to £10,000 per accidentand £2,500 per person.
Learner driver insurance
Insurance for young and learner drivers ages 17 to 25. Discounts up to 21% for good driving.
Up to 90 days
Get up to £10,000 cover per accident.
M&S Bank cardholder's save up to 15% when taking out a new policy or renewing existing insurance.
Up to 93 days with a foreign use extension
Up to 15% off certain additional car insurance policies
Young driver insurance
Up to 60 days
Cover for passenger injury.
Free breakdown cover for eligible new customers and 3 year guarantee on repairs carried out by approved repairers.
Up to 90 days
Optional extra
Get 10% off when you insure additional cars in your household
Multi-car, temporary insurance
Up to 90 days.
Up to £5000 cover.
If you're an existing customer and you insure your second car at the same address, you get a discount of £50

Compare up to 4 providers

What if I want to cancel a policy mid-cover?

If you’re outside the cooling-off period, or more or less halfway into your cover, you will need to check your policy details to see whether you are entitled to any refund. Thinking you’re owed half your premium just because you’ve only used half of your cover isn’t how insurance works.
Many insurers will offer a refund as long as no claims have been made but you may still be required to pay a cancellation fee. Depending on when you pay your premiums, a refund may be given for the remaining full months of unused cover. But again, this can vary between insurers.

What should I do if I disagree with cancellation charges?

If you cancelled your car insurance but feel like the provider has been unfair with its charges, you have the opportunity to get in touch with the provider, usually the customer services department, to explain any issues you have and possibly even challenge any charges. It’s important that you provide all the details about your issue so that your case can be properly assessed. It’s worth keeping track of all your correspondence as you may need to refer back to old letters, emails or telephone calls to reconfirm information.
If you are still not satisfied with the action your insurance provider has taken, you can get in touch with the Financial Ombudsman Service to log your complaint. The Financial Ombudsman Service has the legal powers to help people who may have been treated unfairly by financial services and it won’t cost you anything if you do decide to contact it for advice.

How can I save money on my car insurance?

  • Choose a cover level that suits you. Contrary to what you might expect, comprehensive cover can be cheaper than third party (TP) or third party, fire and theft so it’s always worth checking. This is because of the risk profile of many people who typically get TP.
  • Increase security. If your car is not currently fitted with an alarm, think about adding one to reduce your premium.
  • Have a secure location to park your car. Cars kept in a garage or on a secure driveway are usually cheaper to insure.
  • Limit your mileage. If you start working part-time or your long commute becomes much shorter, letting your insurer know about a reduction in your mileage could result in cheaper insurance.
  • Increase excess. Agreeing to pay a bigger voluntary excess could make your overall premium cheaper. But remember that your insurer won’t pay out for a claim that costs less than your excess. So be careful about making it too high, as it could leave you out of pocket if damage occurs.
  • Add experienced drivers. Adding an older and more experienced driver to your policy could help to lower the premium.
  • Limit optional extras if you don’t need them. Think carefully about which optional extras you really want as adding extra protection to your policy will generally push the price up too.
  • Advanced driving skills. You could be in line for a discount with certain providers by taking an advanced driving course such as those offered by the Pass Plus scheme.
  • Avoid paying monthly. If you can, try to pay for your premium in one go as you’ll pay interest if the premium is spread out over the year.
  • Pick a smaller car. Choosing to drive a small and safe car is likely to lower your premium.
  • Limit modifications. Any modification made to your car to make it look better or drive faster is likely to increase your premiums so think carefully before making any changes.
  • Consider telematics insurance. Having a “black box” fitted to your car to monitor your driving could result in discounts if you drive safely.
  • Shop around. Don’t just automatically renew your car insurance when it’s up for renewal as you could end up paying more than you need. Shop around and compare your options to find the best deal. Keep in mind that the cheapest policy isn’t always the best policy so check the cover details carefully.

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Frequently asked questions

*Disclaimer: Please take reasonable care to answer all the questions honestly and to the best of your knowledge. If you don't answer the questions correctly, your policy may be cancelled, or your claim rejected or not fully paid.

The offers compared on this page are chosen from a range of products whose details Finder has access to track; they don't represent all the products available in the market. Unless indicated otherwise, products are displayed in no particular order or ranking. The terms "best", "top", "cheap" (and variations) are not product ratings and are subject to our terms of use. You should consider seeking independent financial advice and consider your personal financial circumstances when comparing products.

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