Can I cancel my car insurance at any time?
Key takeaways
Most insurers will let you cancel your car insurance policy at any time, though there will usually be a cancellation fee that you’ll need to pay
If you pay annually you should get a refund for the remainder of your policy pro-rata, minus fees and charges
Cancelling after your cooling-off period is likely to incur a larger fee, but if you cancel it during this period you’ll be entitled to a refund
Can I cancel my car insurance at any time?
Yes, you should be able to cancel your car insurance policy at any time. However, the cancellation fees you pay and the potential refund you get will depend on the type of policy you have and when you cancel it.
Cancelling an annual car insurance policy
Car insurance policies generally last for 12 months, so if you pay up front and want to cancel, you should be able to get a refund for the remainder of your contract.
You’ll need to pay for the amount of time you were covered as well as any cancellation fees and charges, so this will be subtracted from your refund.
Cancelling a monthly car insurance policy
If you pay monthly for car insurance you’ll be able to cancel it whenever you choose - just contact your insurer and they’ll be able to arrange it for you.
You’ll still likely face a cancellation fee, which will vary depending on the insurer.
Cancelling car insurance direct debit payments
If you pay for car insurance by direct debit, whether monthly or auto-renewal annually, don’t just cancel it and expect your cover to end.
You’ll need to let your insurer know first, otherwise you might be penalised for missing payments on a policy that is still active.
How do I cancel my car insurance policy?
It's usually quick and easy to cancel your car insurance. Most insurers will let you cancel your policy online, but some still require you to speak to them on the phone. Check your policy terms and conditions to confirm how you need to cancel yours.
To cancel your car insurance, you'll need to follow the steps below:
Find your policy documents
Ideally, your policy documents should be stored somewhere safe where you can easily find them. Your policy documents will include your policy number. If you've lost your documents, you can request a copy from your car insurance provider. However, it may charge you a fee to do this.
Most insurers give their customers access to an online or mobile portal where they can view and manage their car insurance policy. If you don't have a paper copy of your insurance policy, you should be able to view it online.
Contact your provider
Let your insurance provider know you want to cancel your policy. It will arrange for this to be done, and tell you any fees you have to pay and the amount of any refund you’re entitled to.
Arrange new cover if necessary
It is a legal requirement to have car insurance if you drive your car on public roads in the UK. If you cancel your car insurance, you’ll need to have a new policy in place to legally drive. The only exception to this is if you use a Statutory Off Road Notification (SORN) to declare your car ‘off road’.
Will I receive a refund if I cancel my car insurance?
Whether you will receive a refund for any part of your cost will depend on how soon you cancel your policy after first buying it.
Your refund will have an amount deducted for the days you were insured, and you may also be charged a cancellation or admin fee.
Cancellation and admin fees vary between insurers. Some insurers won’t charge an admin fee if you cancel the policy before its start date or within the 14-day cooling off period.
Cancelling your policy will likely have to be authorised by your insurer either way.
What happens if I cancel my car insurance during the cooling-off period?
All UK insurance products are legally required to come with a cooling-off period of at least 14 days, though some offer more. This will start either when you receive your documents or when your cover starts, whichever is later.
You’ll be legally entitled to a refund if you cancel within this period, but you will usually still be charged for the number of days the policy was active.
You’ll also likely face an admin or cancellation fee, but this isn’t always the case during a cooling-off period.
What happens if I cancel my car insurance after the cooling-off period?
Once your cooling-off period ends, your refund and cancellation will depend on the type of policy you took out:
If you paid for the whole policy up front, you should be able to get a pro-rata refund for the time remaining on it, minus any cancellation fees
If you pay monthly, your cover will either end when the time period covered by your last payment ends, or you might be refunded what’s left and your cover will end immediately
Can I dispute car insurance cancellation charges?
Yes, in certain circumstance you can dispute car insurance cancellation charges. For example, if:
Your insurer didn’t make it clear what their cancellation and administration fees were (
Your insurer cancelled your policy but didn’t give you a valid reason
The charges are disproportionate
How do I dispute cancellation charges?
If you’re unhappy you should approach your provider first. Insurance providers’ complaints procedures should be found on their websites.
Keep records of any letters or emails you send, or phone calls you make, as well as the names of those you speak to.
Your insurer has eight weeks to make a final decision and if you’re not happy with the response, you can take your complaint to the Financial Ombudsman Service.
Car insurance cancellation fees
Cancellation fees vary between insurer, with some insurers charging different fees on different policies too. We’ve looked at how much some of the biggest insurers typically charge.
Insurer | Fee within 14-day cooling off period (after cover starts) | Fee after 14-day cooling off period |
|---|---|---|
£25* | £60* | |
£0 | £52.50 | |
£25 plus Insurance Premium Tax at the appropriate rate | £50 plus Insurance Premium Tax at the appropriate rate | |
£25 | £60 | |
Elephant | £25 | £60 |
£29 | £67 or £36, depending when you cancel ** | |
£0 cancellation fee, £20 arrangement fee | £45 cancellation fee, £20 arrangement fee | |
LV | £0 | £40 |
NFU Mutual | £0 | £0 |
£25 | £45 | |
£0 cancellation fee, £28 arrangement fee | £32.50 cancellation fee and £28 arrangement fee |
*Different fees apply for telematics insurance
**Different fees apply for Esure Flex Car Insurance
Figures correct as stated on provider’s websites as of 25 May 2026
How do I compare car insurance quotes?
If you're cancelling your car insurance and need to buy a new policy, we can help you save money on the cost of cover.
You can find cheap car insurance quotes by comparing policies with MoneySuperMarket. All you need to do is tell us a few details about your driving history and your car, and we will search the market for the deals which suit you the best.
Still have questions about cancelling your car insurance policy? Find the answers to some of our most common FAQs below.
Frequently asked questions
Can I cancel my car insurance if I’ve made a claim?
Yes, you can cancel your car insurance if you’ve made a claim but you won’t usually be entitled to a refund if you have paid up front. If you pay monthly, you’re also likely to have to pay the amount outstanding on your policy in a lump sum.
Do I need to cancel my existing car insurance if I buy a new car?
If you buy a new car you need to take action, but that may not mean cancelling your policy.
Most insurers will allow you to update your existing policy to cover the new vehicle, although be aware that this means your insurance premium is likely to go either up or down depending on the type of car.
There is also likely to be an administration fee for moving the policy to a new car. This could still work out cheaper than cancelling and taking out a new policy, but not always. Do your sums before you decide.
When should I cancel if I sell my car?
You should cancel your car insurance immediately if you sell your car. If you no longer own the car and you’re not replacing it, there is no point paying for cover you don’t need.
Failure to cancel could also result in a claim against your insurance if the new owner has an accident.
Do I lose my no-claims discount if I cancel my insurance?
Yes, if you cancel it’s likely you’ll lose that year’s no-claims discount because you won’t have completed one full year of claim-free driving.
What if my insurer cancels the policy?
If your insurer cancels your policy make sure you find another insurer immediately. Even if your car is just parked on the roadside without insurance it could result in a fine.
Insurers do not usually cancel policies, but it can happen if the chances of a claim increase, such as modifications to your car to make it more powerful.
Should I cancel or let my insurance auto-renew?
Never cancel a policy and leave yourself uninsured on a car you are driving.
You should also not let your policy automatically renew every year without first checking that you cannot find a better deal.
It’s always worth comparing quotes before renewal because insurers rarely reward loyalty and you are likely to save yourself a decent sum.
What happens if I cannot contact my insurer to cancel?
If you cannot get through to your insurer on the phone, email them.
If your policy is up for renewal, emailing your insurer before the renewal date to inform them that you do not want to auto-renew and have found a policy elsewhere should suffice.
Only the policyholder is able to cancel a policy and you should include your policy number, your car registration and your renewal date if applicable, as well as your name date of birth and address.
It’s worth adding the reason for the cancellation and explaining that you were unable to get through over the phone.
Should I cancel my insurance if I declare my car SORN?
No, don’t automatically cancel your car insurance if you declare your car off the road with a Statutory Off-Road Notification (SORN).
Even if you are taking your car off the road for a period and don't plan to drive on public roads, there may be reasons for keeping your insurance policy.
The insurance will still cover the car if should catch on fire or if it’s stolen and if you retain the policy, you will also be earning the no-claims bonus.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Sarah Tooze
Car & Van Insurance Expert
Sarah Tooze has been a motoring journalist for more than 15 years, specialising in company cars and vans, and has won a number of awards during her career, including the Newspress ‘Automotive...
