There are many reasons why you might want to cancel your car cover and go for another policy, or ‘switching’ it. A lot of the times, you are not happy with the price and you feel overcharged after finding quotes from other companies. But, it could also be due to wrong details on your current policy or you changing car or address.
Cancelling your policy in the first 14 days
When you buy car insurance in the UK, the first 14 days is normally a “cooling-off” period. That means you should be able to get a refund if you cancel.
You may still need to pay an admin fee and you can charged for the number of days you are covered for, but it should be relatively small compared to the annual price you pay.
Cancelling your policy after the first 14 days
After the initial 14-day period, it usually gets a bit more costly to cancel your policy, but it is not impossible. Surprisingly, many insurers do allow you to cancel your car insurance by paying a fee, often £50. That means you can stop the policy once you have paid for the outstanding fees agreed with your insurer (if you pay monthly). If you have paid for the whole year, you will need to get a refund, which can take up to two months. You may also lose your current year’s no-claim bonus, provided that you have not made any claims during the year.
If you have found a cheaper policy
The rule of thumb is: If you are not happy with your policy, try to read the cancellation policy first.
Unfortunately, it is not uncommon for insurance companies to overcharge. It is especially true for foreign-born drivers in the UK, who can be charged 100% more for their cover compared to those born here. If you feel you are paying too much and have found a better quote, you might want to read the terms on cancelling your existing policy and decide whether to switch to the cheaper one. Most insurance companies ask you to call them to cancel your policy.
People who live in a foreign country are overcharged billions of dollars by finance companies. We know that’s not fair, so we’re fixing it.
We’ve started by building a different type of insurance company that accepts international licence, ditches the fees and rewards our customers for any international driving experience earned outside of the UK.