Cancelling car insurance

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.

• Aviva
• AXA
• Admiral
• Diamond
• Esure
• Churchill
• Tesco
• Hastings
• Elephant
• Direct Line

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.

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.

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

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.

How much does it cost to cancel car insurance?

The amount it costs you to cancel your car insurance will depend on your own circumstances as well as a number of other factors. These include the point at which you decide to cancel, whether there are any cancellation fees to pay, whether you will get a refund or not, and whether you’ve made any claims, amongst others. Consider all these factors carefully against your own situation before cancelling your policy to avoid being left out of pocket.

Frequently asked questions

• 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.

• Can I cancel my insurance if I've made a claim?

  Yes, you are likely to still be able to cancel your car insurance after making a claim but you might not get a refund. Read your policy document carefully and check the terms and conditions to see how these relate to your situation. If you paid for your policy in one go, you might not be able to get any of the unused premium back. Similarly, if your premium is spread out in monthly payments, you may still be required to pay the outstanding months either in one go or each month.

  Avoid any nasty surprises by doing your research before pulling the plug on your policy.

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Written by

Helen Champion

Writer

Helen Champion was an associate editor at Finder. She has worked in communications for over 16 years and currently writes on a range of topics including insurance and money transfers in the hope of empowering people to make better financial decisions. During her broadcast career, she helped to produce hundreds of news and breaking news reports for Associated Press TV and ITV News. And in public relations, she managed several high-profile public relations campaigns for Macmillan Cancer Support, the General Medical Council and overseas for Qatar Foundation on behalf of BLJ Worldwide. Helen has a Bachelor of Arts in Journalism from the University of Lincoln, a passion for practising karate in the dojo and a deep love of making mischief with her sons. See full bio