So you want to cancel your car insurance. There are many reasons why you might want to do this. Maybe your current insurance isn’t giving you the cover you need or you no longer have access to a car. In any case, you are entitled to cancel your policy at any point.
But be warned: Cancelling your car insurance can be costly and may be unnecessary. Depending on why you want to cancel, you might be better waiting for your current policy to end, but the best thing to do is to talk to your current insurance providers.
How to Cancel Car Insurance – The Cooling-off Period
Say you’ve just taken out a new car insurance policy, only to change your mind a few days later. Frustrating, right? But the good news is that, when you buy most kinds of cover, you’ll be given a 14-day cooling-off period, in case you change your mind.
You might have to pay an admin fee, and you might have to pay for however many days you were covered for. But so long as you notify your insurer within 14 days, you should be entitled to a refund.
What If I’m in the Middle of My Policy?
If it’s been more than 14 days since you took out your car insurance, you can expect to pay substantially more to cancel your insurance. There’ll likely be a cancellation fee, and you won’t necessarily receive the sort of refund you might expect. For instance, if you cancel halfway through your policy, you may not get half of your premium back. And if you’ve made any claims against your policy, you might not get any return premium.
There are a few other things you should bear in mind before you consider cancelling your car insurance early. Have you got any add-ons to your policy, like breakdown cover or personal accident cover? Cancelling your insurance will also cancel this additional cover, and you may not receive a refund.
The most important thing to remember though, if you’re working towards a No Claims Discount, cancelling your policy could result in you losing all progress. You’ll most likely have to start your no claims discount from scratch with your new insurer.
I Still Want to Cancel My Car Insurance
The first thing you should do is check your car insurance policy wording. This will let you know exactly what to expect when you cancel your insurance – the fees you might have to pay, the benefits you could lose, what will happen to your No Claims Discount, and how much notice you have to provide.
Your policy wording will also tell you how to actually go about cancelling your insurance – whether it’s in writing, via email, or over the phone. You can’t just cancel your direct debit. You’ll have to explicitly notify your insurer of your intentions. This goes for cancelling auto-renews of annual insurance policies, too. You have to let them know!
Also check your insurance certificate, as this will tell you how much longer your car insurance has left until it’s time to renew. If you’re just looking at a month or two, then it makes no sense to cancel early. You’re unlikely to get any sort of refund if you’re near the end of your policy, so you’re much better waiting until the end of your policy period unless you have sold your car and you do not have a replacement to put on cover.
What If I’ve Bought a New Car?
There’s no need to cancel your insurance. Most insurers will just need you to get in touch to tell them that you’ve got a new car, and they’ll update your policy accordingly. You may have to pay a small fee for amending your policy, though. And, depending on the new car, you may have to pay a greater premium for the remainder of your policy.
Not Getting the Insurance Cover You Need?
Perhaps you want to cancel your car insurance because you feel you’re not getting the cover you need from your current provider?
If this is the case, before you consider cancelling, try calling your insurer to discuss the options first.
One last thing to remember – never cancel your car insurance without first seeking an alternative. Driving uninsured is against the law! Don’t risk losing everything by spending any amount of time driving without adequate cover.
At Go Girl, we specialise in driving down the cost of insurance, and our comprehensive cover is designed to meet all of your needs at a price you can afford. Get in touch for a free quote.