Does It Cost to Cancel Car Insurance in the UK?

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Prior to cancellation, you should know about your rights and insurance terms and conditions that might save you some money. Also, you should know whether you are entitled to a refund or not. So, without any ado, let’s find out about cancel car insurance policy and what its terms and conditions are.

How to Cancel Car Insurance?

If you have decided to cancel your car insurance policy, you should take a look at its terms and conditions to see if they have specified a certain procedure for it. If not, the following methods work for most cases.

  • Online– If you have been managing your policy online, get yourself online and follow the required steps.
  • By phone– you can call an insurer to cancel a car insurance policythen write down the time of call, date, and the name of the person you spoke with for the record.
  • In writing– In most cases, insurers require a written letter so, remember to fill it up with all relevant details that include name, policy number, and address.

When cancelled, make sure to receive confirmation of cancelling, or else the insurer will chase you for the unpaid amount.

Will I Get a Full Refund If I Cancel Car Insurance Policy During the Cooling-Off Period?

Yes, you will get a full refund, but with some changes. The cooling-off period of your car insurance is 14 days, cancelling your car insurance policy early will only save you the cancellation fee. You will get a refund minus any days the policy was active for. Also, you will be charged an administration fee.

The 14 days cooling-off period starts after getting the paperwork. Also, confirm it by asking, is my car insured from today to know about the cooling-off period. When insured, make sure that you cancel car insurance in this period to get rid of cancellation fees.

Can I Dispute the Costs of Cancellation?

It’s worth a try. However, there are high chances that you lose. A better option is to be aware of cancellation fees before taking out the policy to save yourself from any surprises.

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Can I Cancel Car Insurance After Claim?

Yes, cancellation is possible even after the claim. However, you will not get a refund for the policy’s remaining, even if you have made full and upfront payment.

If you have opted for monthly instalments, you should pay for the rest of the policy completely. Yes, it’s heartbreaking, but according to a car insurance policy, the policy has served its purpose so, no refund after the claim.

Should I Cancel My Car Insurance Policy If I Am Purchasing a New Car?

In the car insurance terms and conditions, you can update the current insurance to reflect your new vehicle. If the new car is a newer model and modified, then you should expect a premium increase.


Wrapping up, if you have decided to cancel car insurance, then it better be during the cooling-off period otherwise, you will have to pay hefty cancellation fees.

Sorting out car insurance might be confusing, but our easy guide might have helped you understand it better. If yes, leave a comment below and let us know about your query, and we will help you with it.

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Can I Cancel My Car Insurance Anytime in the UK?
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Can I Cancel My Car Insurance Anytime in the UK?
Independent of time, you can cancel car insurance, but it might incur costs. Your service provider will charge an administration or cancellation fee.
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Compare Market Insurance
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