Realise you’re paying above the odds on your insurance and want to make a switch? Unfortunately, cancelling your existing car insurance policy often comes with a fee.
Whether you’ll be charged a cancellation fee or not depends on when you cancel, your insurer’s terms, and if you’ve made a claim.
In this guide, we’ll explain how cancellation fees work, when you might be eligible for a refund, and what to consider before ending your policy early.
In this article:
- Can you cancel car insurance at any time?
- What if you pay for your insurance monthly?
- Can you get a refund if you cancel?
- Step by step: How to cancel your car insurance policy
Paying the cancellation fee is often worth it if you can get a cheaper policy. Find out what prices you could get with the
Young Car Driver insurance comparison tool.
Can you cancel car insurance at any time?
Yep, you can cancel your car insurance policy at any time, but the financial impact will vary. If you cancel within the first 14 days, you’re entitled to a refund minus a small admin fee.
After this period, cancellation charges tend to be higher.
The cost of cancelling
The fees depend on your insurer, but here’s a general idea of what you might be charged:
| When you cancel | Typical charges |
|---|---|
| Within 14-day cooling-off period | £25–£50 admin fee |
| After 14 days but before renewal | £50–£100 cancellation fee |
| At renewal | No charge if you don’t renew |
Even if you cancel early, you’ll still have to pay for the time you were covered. If you paid upfront, your insurer may refund the unused portion of your premium, minus any admin fees.
What if you pay for your insurance monthly?
With the sky-high prices of insurance, many young drivers pay for their insurance policy monthly.
In some cases, the insurer can request a full payment: but this is rare. The majority of insurers will allow you to cancel mid-policy, even if you’re paying for your policy monthly.
However, before cancelling, double-check your policy to determine if it’s worth switching.
Can you get a refund if you cancel?
It depends. Here’s when you can get a refund:
| Situation | Can you get a refund? |
|---|---|
| Cancelling within 14 days | Yes, minus admin fees |
| Cancelling after 14 days | Partial refund, minus fees |
| Cancelling after making a claim | No refund |
If you’ve made a claim on your policy, insurers will almost never provide a refund, as the policy has already paid out.
Step by step: How to cancel your car insurance policy
- Contact your insurer: Call or use their online cancellation form to begin the process.
- Check the charges: Ask about any cancellation fees or outstanding payments.
- Return your insurance documents (if required): Some insurers may request proof of cancellation for record-keeping.
- Get confirmation in writing: Always request confirmation that your policy has been cancelled to avoid unexpected charges.
Find the right insurance policy before cancelling
To figure out whether it’s actually worth paying the cancellation fee and switching, you need to make sure you’re finding the best possible prices.
To do this, consider using the
Young Car Driver insurance comparison tool. We’ll help you compare car insurance options to find affordable, flexible policies that work for you.
Get a quote today and see how much you could save!