Cancelling Car Insurance: Fees and Refunds
Updated Oct 20, 2026 · Hannah Breckett · 5 min read
Cancelling mid-term often costs a fee. Know the rules before switching.
What this article covers
You might cancel because you sold your car, found a cheaper policy, or moved abroad.
Insurers usually allow it but may charge.
Cooling-off period
Many places allow a short cooling-off period after buying a policy, with a refund minus time on cover.
After cooling off
- Cancellation fees
- Pro-rata or short-period refunds
- No refund if you have claimed
- Monthly payments may still be owed
Avoid gaps
Make sure new cover starts before old cover ends.
Selling your car
You may be able to transfer cover to a new car instead.
Auto-renewals
Many policies renew automatically. If you do not want to renew, tell your insurer before the renewal date and keep confirmation. Check your renewal notice carefully — prices often rise for loyal customers, and comparing quotes can save money. Some regulators require insurers to show last year’s premium on the renewal notice so you can compare. See our renewal shop-around guide.
This is general insurance information, not legal, financial, or insurance advice. Coverage depends on your specific policy, insurer, and jurisdiction. Read your policy documents and speak with a licensed insurance agent or broker before making decisions.