Can I Cancel Car Insurance At Any Time? How FairSquare Can Help 

You may want to cancel your car insurance for many reasons. Maybe you’re selling your car, or you’ve found a better deal for yourself elsewhere. Whatever the reasons may be, you’re probably wondering: Can I cancel car insurance at any time? What are the consequences if I do cancel my car insurance?

Overall, it is most dependent on your specific insurance provider’s policies. 

If cancelling your car insurance is on your agenda. Then you have come to the right place. This article will discuss everything you need to know about cancelling your car insurance and when is the best time to do so. 

The Best Time To Cancel Car Insurance

The best time to cancel car insurance is during the cooling-off period.

Insurers are required by law to offer a 14-day cooling-off period. During the cooling-off period, you are allowed to change your mind and cancel your car insurance for any reason. There are only two conditions. The conditions are:

  • You should not have made a claim
  • You should not have a claim pending during the 14-day period

If you haven’t made any claims, you should receive a refund for any premiums you have already paid. 

Some insurers may also charge you an admin fee which is generally not as high as a cancellation fee. This is dependent on your insurers’ policy. 

If you made a claim during the 14-day period, you can still cancel your car insurance but you probably won’t get a refund.

This two-week period gives you time to think over your decision, and it goes into effect once you have received your policy documents or when the policy starts.

There are insurers that offer a longer cooling-off period. Make sure to check your policy documents for information regarding the length of your cooling-off period.

Add-ons such as breakdown cover are often not included in the cancellation. Contact the provider of the add-on to cancel this cover separately. 

Cancelling Car Insurance After Your Cooling-Off Period

If you have passed the cooling-off period but still wish to cancel your car insurance, you will be charged a cancellation fee.

An admin fee may be also added on top at some insurance providers. 

You will most probably receive a smaller refund in this case. The reason being that insurers deduct from your refund the days you were insured with them. 

For example, if you cancel typical 12-month car insurance after 3 months, you will receive a refund of 9 months minus the cancellation fee or any possible admin fees. 

Can You Cancel Your Car Insurance If You Pay Monthly?

Sometimes, paying your car insurance in monthly instalments via direct debit payments is the better option. 

It is important to note that simply cancelling your debit order does not cancel your car insurance. You may be chased after by your insurance provider for unpaid premiums. 

To cancel your car insurance: contact your insurers directly and confirm your cancellation, requesting a receipt of cancellation.

Although you are still able to cancel your car insurance with monthly instalments, you will probably not get a refund. 

You’ll have to pay for the remaining months that you were covered for. As well as the additional cancellation fees. To add to that, an extra fee is often charged. Which is a percentage of the total price of the policy. 

If your car insurance is paid up in full, your refund will be calculated as the remaining months that were not covered by your insurance. Minus any cancellation or admin fees that an insurance provider may charge. 

Cancelling Car Insurance When Selling Or Replacing A Car

If you’re ready to sell or replace your car, you’re probably wondering what happens with your car insurance. 

Selling a car? Cancel your car insurance as soon as possible. You shouldn’t have to pay for a car you don’t own. The worst-case scenario is that there could be a claim on your policy if the new owner is in an accident. 

On the other hand, if you’re replacing your car most insurers will update your policy and cover your new vehicle. 

Your policy will be updated with a new cost due to any specific risks associated with your new car. Despite this, it may still be cheaper than cancelling and taking out new car insurance. But make sure to calculate your options. 

Can I Leave My Car Insurance Early?

You are able to cancel your car insurance before the policy starts if you have set it for the future. 

In this case, you will receive a full refund, usually without any extra fees and costs. 

The cooling-off period only begins once your policy has started. 

Can I Cancel Car Insurance Half-Way?

You can cancel your car insurance at any time. However, it is good to know that insurance providers don’t usually refund the final two months of premium. 

This is because insurers use the earlier premiums to fund their administration costs. 

As a result, if you cancel a 12-month policy, with 6 months remaining, you may only receive a 4-month refund.

Automatic Renewal Of Car Insurance

If you’re waiting for your car insurance to expire instead of cancelling it. Remember that most insurers have an automatic renewal that kicks in. 

A letter or email should be sent to you around 21 to 30 days before your policy expires. If you don’t make any changes your policy will automatically renew with a new price, which is usually higher.

So remember to change the automatic renewal on your car insurance

What Happens After Cancelling Car Insurance

Here’s what you need to remember when thinking, “Can I cancel car insurance at any time?”

Your car should always have valid car insurance. Even if you’re not driving it, or it should be declared SORN. If not, you could face a fine.

 SORN (Statutory Off-Road Notifications) means that your car is considered “off-road” and that you will not drive it. In order to drive your car again, you need to un-SORN your car. 

The Verdict

The answer to the question ‘Can I cancel car insurance at any time?’ is, yes.

You can cancel your car insurance at any time. Although you’ll probably be charged with extra costs such as cancellation and admin fees.

If you cancel within 14 days of your policy starting, your refund will be much larger.

However, it is wise to check your policy documents for what the fees are for cancelling because it might be better to wait until your car insurance expires.

FairSquare helps make sure you choose the right car insurance for you by giving you the best finance options when buying a car. So you won’t need the hassle of cancelling your car insurance policy again.

How FairSquare Can Help You

FairSquare offers you the most competitive finance deals on cars, with a highly personalised finance broker service.

To add to that, FairSquare is completely independent and transparent so you can trust their financial advice and options. 

FairSquare also provides a free credit check (that doesn’t reflect on your credit score) and matches you with the right lenders that meet your preferences. 

So if you’re on the hunt for your new car, FairSquare can give you the best financial options for the car you’re interested in. 

As a result, they save your wallet from excessive payments. So you have more cash to get the car insurance policy you’re happy with and no more need to cancel your policy. 

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