What to know about cancelling car insurance

All of our content is approved by our in-house advisory board of experts

Car insurance can offer financial protection if you’re involved in an accident.

What if your current car insurance isn’t working for you? You might be tempted to cancel. Here’s everything you need to know about cancelling your car insurance, from the costs to the pitfalls.

How do I cancel my car insurance?
Does it cost me to cancel my insurance?
How can I prepare before cancelling my policy?

How can I cancel my car insurance policy?

To cancel your policy, you’ll need to find out when your car insurance is due and then get in touch with your insurer. Every insurer will have their own required process for cancellations, whether that’s in your online account, by email, letter, or by phone, so it’s worth checking the terms and conditions of your insurance policy to find out the correct process.

At Allianz Insurance, we keep it simple. To cancel your car insurance policy, all you need to do is log in to your online account and follow a few simple steps. Remember, there may be a cancellation fee - have a look at your policy documents for more detail.

How much does it cost to cancel my car insurance?

Car insurance policies tend to last 12 months as standard. So, if you’re looking to cancel before your policy ends, it may require you to pay a cancellation fee.

Your policy terms and conditions should state if you’ll be charged for leaving your policy early, and what these costs will be. You can also get in touch with your insurer or broker to find out what cancellation fees might apply.

Good to know: The price for leaving your policy early can be labelled under many different names, including cancellation fees, admin charges and processing costs.

What is a cooling off period in car insurance?

As with most goods or services, it’s a legal requirement to provide you with a 'cooling off period' to give you 14 days to cancel your insurance policy. You don’t even have to give a reason.

When does my 14-day cooling off period start?

The 14-day cancellation period begins when your cover starts or the day the paperwork arrives (whichever’s later).

Will I get a refund if I cancel my car insurance in the first 14 days?

During these initial two weeks, you should expect to receive a refund if you decide to cancel your policy. It’s worth remembering, though, you’ll still be charged for any days you had cover, so this will be deducted from your refund. You’ll also want to read the terms and conditions of any policy you take out as some insurers charge admin fees.

How can I prepare for cancelling my car insurance?

Here's a handy checklist to help you get ready to cancel your car insurance and make sure the process is as smooth as possible:

Check the cooling off period

The standard cooling off period is 14 days, but some insurers may give you longer.

Find your policy documents

When you contact your insurer about cancelling, they may ask for your policy number and renewal date. You’ll find these in your policy documents.

Know your reasons for cancelling

The insurer may ask why you’re cancelling. This could be to improve their services or decide the next steps. It’s a good idea to be honest, even if you’re looking for a cheaper policy elsewhere.

Note down key information

If you decide to cancel your car insurance policy, always keep a record of dates and times of any correspondence or confirmation, in case there are any issues further down the line.

Have another policy lined up

It’s illegal to drive without car insurance. If you want to keep driving your car, make sure you’re covered by taking out another policy as soon as your cancellation is confirmed.

Before you cancel your insurance… do you have alternative cover in place?

Remember, as a car owner, it’s your responsibility by UK law to make sure your vehicle is insured. This applies even if you’re not intending to drive it.
The only time you wouldn’t need valid tax and car insurance is if the car’s not being kept or used on a public road. In other words, if it’s in a garage, on a drive or on private land.
If you’re the registered keeper and this applies, you’ll need to declare it ‘off-road’ by making a Statutory Off Road Notification (SORN).
Looking for a car insurance quote? With Allianz, you manage your policy yourself online, so you can make changes with just a few taps… and no admin fees.