Everything from cancellation fee’s to cooling-off periods, here’s all the info you need to cancel your car insurance.
Made a decision to sell your car? Or possibly it has been taken off the road and you’re not quite ready to purchase a new one? Or maybe you have just had a change of heart on your current car.
Whatever the reason is that has made you need to end your vehicle insurance policy, there are many things you ought to know of first.
Will there be a cooling-off period?
If you have decided you just don’t want the insurance you have obtained, for reasons unknown, UK insurance guidelines offer you a 14-day “cooling-off” period. Which means that if you would like to end a policy within a fortnight of getting your policy, you ought to be eligible a refund.
You will possibly have to pay an fee, however, you can be charged for the amount of time (total amount of days) you were covered for. Alternatively, if your policy hasn’t yet began yet, you should simply be able to cancel and pay the charge.
Cancelling an insurance plan mid way through the policy?
After the 14-day cooling-off period has expired, the expense of cancelling will go up dramatically. If you wish to cancel your plan following this period, you’ll be charged a very hefty fee. Cancelling mid way through your policy doesn’t indicate that you’ll get fifty percent your premium back either.
Effects of cancelling your car insurance coverage early
There can be cons to cancelling your vehicle cover early, so check all the related terms and conditions in advance. For example, you might lose out on the no-claims reward for the period. Or, if you have break down cover and other add-ons incorporated with your plan, these will also expire and you might not get a refund for them.
Cancelling your policy before it is renewed automatically?
Many annual insurance policies renew automatically by the end of the 12-months. That is done to make sure that drivers are to busy to remember their renewal dates aren’t driving around uninsured illegally.
If you do not wish to renew your present car insurance, you need to call your insurer either by telephone or write to them on paper. It isn’t enough just to cancel your immediate debit.
You have to pay any charges because you provided your cancellation request prior to the new policy beginning.
Investing in a new car?
If you’re getting rid of your car and purchasing something new, you might not need to change your insurance whatsoever as most insurers will help you to update your policy to protect the new car. There are charges for doing this often, however, and it’s worth considering that your premium for the rest of the months of the policy may change to reflect your brand-new car’s “risk rating”.
In case your insurer does increase your premium by a big total to cover your new ride, maybe it’s well worth comparing quotes, see the Top Deals page here and have a good night of comparing quotes via them to see what is best for you.
How exactly to cancel your vehicle insurance
If you’re decided by you need to do want to go on and cancel, you’ll need to get hold of your insurer. Insurance firms have different methods for cancellations, so it is most beneficial to consult with them.
How to proceed if you disagree with cancellation charges
The cost to cancel early could be very significant. If you believe you have been unfairly charged – or when you have to cancel because of what you think is a blunder on the insurer’s part – make a complaint.
Get an address for their customer services department, and write offering clear information on your case, add information such as what happened, when, and just why you have been charged to much . If fees are in the booklet, you might be in a position to challenge them.
Keep an archive of anyone you talk with, and photocopies of the mail you send. If you are using Special Delivery, you’ll have evidence they’ve been received. If the business doesn’t deal with your complaint, you may take your case higher to the FOS (Financial Ombudsman Service) at no extra charge to you.
Step by Step on how to cancel
- Check if you remain within the 14 day cooling-off period
If you’ve only recently bought your car insurance policy, you could still be eligible for your cash back, without the admin charge, so long as it’s still within the two-week window, and also you haven’t made any claims.
- Learn how much you’ll be looking to pay to cancel your vehicle insurance.
When you have passed the cooling-off period already, the cost to cancel may increase, and there may be a limit on any refund you’re eligible for also.
- See what the results are for cancelling your plan.
This consists of your no-claims bonus and potential add-ons you have with this policy that might not be refundable.
- Any kind of other strategies to pursue instead?
If you’re cancelling your policy to improve vehicles, for example, your insurance provider may be able to transfer your plan to your brand-new vehicle.
- Is it nearly time for you to renew your policy?
Auto renewals are normal with insurance providers, but if you’re not seeking to renew your policy then ensure this is communicated with your insurance provider at the earliest opportunity.
- Contact your insurance company
Either check your policy instructions or provide them with a primary call. Be sure you understand your insurer’s specific cancellation process, including their particular complaints policy, if the need arise.
- Compare quotes
If you are dissatisfied with your insurance coverage and also have cancelled your plan, why not check around and compare estimates for the best policy to your requirements?