How to cancel a car insurance policy
Key takeaways
- Insurers typically charge a small cancellation or admin fee for early policy cancellations, although the cost varies between providers.
- You could be owed a partial refund depending on whether you paid for your insurance upfront and the specific terms of your policy.
- Cancelling your insurance mid-term can prevent you from earning your no-claims bonus for the year. However, your current no-claims bonus will remain valid for up to two years.
- It’s a requirement for all cars on public roads to be insured, so having a new policy set up before you cancel is best to avoid a break in cover.
Can I cancel my car insurance policy?
Yes, you can!
If you want to cancel your car insurance policy, you’ll be able to do so at any time. However, it’s likely your insurer will ask you to give written notice or confirm your request over the phone in order for your cancellation to be confirmed.
Depending on your car insurance provider and how far into your policy you are, it’s also possible that you’ll be charged a small cancellation fee. And in some cases - usually when you’ve paid some or all of your plan in advance - you’ll receive a prorated refund for the unused part of your premium.
If you still plan to drive, it’s a good idea to have another policy in place before cancelling your current one. To avoid any lapse in cover, ask your new provider to help coordinate the cancellation. Alternatively, if you’re taking your car off the road, you’ll need to declare a SORN instead.
How do I cancel my car insurance?
To cancel your car insurance, you’ll need to get in touch with your provider either by phone or by contacting them online.
The process should be straightforward and easy. However, it’s important to check whether your insurer requires you to give written notice of cancellation. If they do, you’ll likely be asked to provide it in a letter or via email.
Before you cancel, it’s worth checking if your provider charges any cancellation or admin fees. And, if you still plan to use your car, it’s crucial you have alternative insurance in place. Remember: your car must be insured at all times if it’s on public roads, even if it’s just parked.
Is there a cost for cancelling car insurance?
It depends on your provider and specific car insurance policy. However, in many cases, you’ll be charged a small cancellation fee if you decide to terminate your plan.
If you paid your insurance upfront when you selected your plan, you could be owed a partial refund. However, the amount you can receive will vary depending on how far into your policy you are at the time of cancellation.
When you go to cancel your policy, keep in mind that insurers don’t tend to refund premiums with only two months or less to go on the term. And if you’re cancelling your insurance mid-term, this will likely reduce your refund amount, too.
To find out what cancellation fees, if any, you’ll be charged and whether you’re entitled to a refund, you can check your individual policy documents or get in touch with your provider for more information.
Car insurance cancellation fees
How much you’ll be charged to cancel your policy depends on your provider and can sometimes vary between policies. However, it can be helpful to know what some insurers set as their standard fee.
Let's take a look at the cancellation fees for select providers:
| Car insurance provider | Fee (within 14 days) | Fee (after 14 days) |
|---|---|---|
| Admiral | £25 | £60 |
| Aviva | £25 | £50 |
| AXA | £0 | £52.50 |
| Diamond | £25 | £60 |
| GoSkippy | £35 | £75 |
| Hastings | £0 | £45 |
| Marmalade | £25 | £50 |
| RAC | £25 | £45 |
| Tesco Insurance | £25 | £50 |
*Fees correct as of March 2026
Can I dispute car insurance cancellation fees?
If you think you’ve been charged incorrect cancellation fees, you can dispute this with your provider.
Your first step should be to check your policy documents and double-check the fees you agreed to. Then, if you still wish to dispute the charges, you can get in contact with your insurer and explain the issue.
If possible, you should provide evidence to help support your dispute. And, if the issue isn’t resolved or you’re not satisfied with the outcome, you can raise a formal complaint with your insurer. Alternatively, contact the Financial Ombudsman Service, who will review your complaint.
Will I get a refund if I cancel my car insurance during the cooling-off period?
In most cases, insurers will offer a full refund if you choose to cancel your policy within the cooling-off period, which usually covers a 14-day window. During this time, you’re free to change your mind and cancel your policy for any reason at all.
While some insurers will still charge an admin fee for cancellations during the cooling-off period, this is likely to be significantly cheaper than if you were to cancel your plan mid-term.
If your cover has already started, you’ll still have to pay for the days you were insured. So, if you want to cancel your cover, it’s recommended that you reach out to your provider as soon as possible.
In accordance with the law, the 14-day period kicks in when your policy starts or when you receive the relevant policy documents, whichever is later. However, it’s worth perusing your policy documents, as some insurance companies have a longer cooling-off period.
Will I get a refund if I cancel my car insurance after the cooling-off period?
This will depend on your insurer, the terms of your car insurance, and how much of your policy you’ve already paid.
If you paid annually for your policy, your insurer might give you a partial refund for any months you’ve not used. However, you won’t get a refund for the period you’ve already paid out and used.
You also won’t be entitled to a refund if you’ve made a car insurance claim and, in most cases, you’ll have to pay a cancellation or admin fee. Although, it’s always best to check your car insurance cancellation policy, as fees can vary.
Will cancelling my car insurance affect my no claims bonus?
Yes, cancelling your car insurance can sometimes affect your no-claims bonus.
If you choose to cancel your policy mid-term, it’s unlikely you’ll earn your bonus for the year. Usually, you’ll have to complete the full 12 months of your insurance in order for it to count.
However, your current no-claims bonus won’t be lost. And, if you're taking a break from insurance, any years of no claims you have will remain valid for up to two years.
Cancelling your insurance and taking a break for longer than two years could mean losing your no-claims bonus altogether. This could result in a higher premium if you choose to buy car insurance again.
Before you cancel, it’s a good idea to weigh up the cost of losing your no-claims bonus. If the savings you’ll make by choosing a new policy don’t make up for the loss of your bonus, you may want to consider keeping your current policy active until its renewal date.
Should I cancel my car insurance for a cheaper policy?
In some instances, it might be worth cancelling your insurance for a cheaper policy. If you’re feeling unsure, we’d recommend comparing quotes and checking your current provider’s cancellation fees.
If the cost of a new, cheaper plan doesn’t make up for the cost of cancelling, it might benefit you to stick with the policy you already have.
Once you’ve weighed up your options, you may still choose to cancel your insurance and switch providers. However, you’ll want to make sure your new policy starts before your old one ends to avoid a gap in cover.
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