Can You Cancel car insurance At Any Time?
Table of Contents
Yes, you can cancel your car insurance at any time in the UK. Whether you pay monthly or annually, it’s your legal right to cancel, but depending on when you cancel, you might pay a cancellation fee and may not receive a full refund.
Just make sure your car is either insured elsewhere or declared off-road (SORN) to stay legal.
Key points
What Happens When You Cancel Mid-Policy?
When you cancel your policy mid-term:
- You’ll usually get a pro-rata refund for the unused portion of your premium
- Most insurers charge a cancellation fee (typically £25–£55)
- Any add-ons (like breakdown or legal cover) may be non-refundable
- If you’ve made a claim, you probably won’t get any refund, and may still owe the full premium
Can You Cancel During the Cooling-Off Period?
Yes. If you cancel within 14 days of receiving your documents or the policy start date (whichever is later), this is known as the cooling-off period.
You’ll still pay for the days you were covered, plus a small admin fee, but you won’t be charged the full premium.
Learn more here: Can I Cancel My Car Insurance Within 14 Days?
What If You Pay Monthly?
Monthly payments are usually part of a credit agreement. Cancelling doesn’t stop your financial obligation:
- You might still owe money to the finance company
- You may be billed the difference if you haven’t paid enough to cover time used
- Cancelling can affect your credit if payments are missed
More on this here: Can I Cancel My Car Insurance If I Pay Monthly?
What to Do Before Cancelling
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Arrange alternative cover if you still plan to use the car
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Declare SORN with the DVLA if the car will be unused and uninsured
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Check your insurer’s cancellation terms in your documents
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Contact your insurer to confirm your final balance and refund (if any)
Can I cancel if I’ve made a claim?
Yes, but you’ll usually have to pay the full premium and won’t get a refund.
Does cancelling affect my no claims bonus?
If you cancel before completing a full year, you won’t earn a no-claims bonus for that period.
Can I cancel and switch insurers mid-policy?
Yes, but make sure the new policy starts immediately to avoid being uninsured.
Will cancelling hurt my credit score?
Only if you default on monthly payments. Cancelling itself won’t affect your credit file.
In Summary
- You can cancel your car insurance at any time
- You may owe a cancellation fee and won’t always get a full refund
- Monthly policies involve credit agreements, you may still owe a balance
- Always arrange new cover or declare SORN before cancelling
Recently Cancelled Your Car Insurance? Compare New Quotes
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