Car insurance cancellation

Our comprehensive guide covers everything you need to know about cancelling car insurance, including the steps to take, potential refunds and what happens if your provider initiates the cancellation.

Can I cancel my car insurance?

You can cancel your car insurance anytime, even if you’ve paid for a full year. You might want to cancel if you sell your car or if it’s written off in an accident and you’re not buying a replacement.

If you’re thinking of switching to cheaper insurance, check the terms and conditions first. Look for any refund details and cancellation fees. Sometimes, after adding these costs, the new deal might not be cheaper after all.

How do I cancel my car insurance?

Cancelling your car insurance is straightforward. Most providers will ask you to call them, but some let you cancel online. Make sure you’re the policyholder and have your policy documents, including your policy number, ready.

If you’re a Saga customer, you can cancel your policy by calling 0800 056 9167.

Will I get a refund if I cancel my car insurance?

When you buy car insurance, all companies must give you a 14-day cooling-off period by law to change your mind. This period starts either from the day you buy the policy or the day you get your documents, whichever is later. If you cancel within these 14 days, you get a refund, but you’ll have to pay for the days you were covered.

For Saga car insurance:

• If you cancel before the policy starts, you get a full refund, including the arrangement fee.
• If you cancel within the 14-day cooling-off period, you get a refund minus the days you were covered. You won’t get the arrangement fee back.

Saga Select and Standard customers have to pay a cancellation fee, but Saga Plus customers don’t.

Will I get a refund if I cancel after the 14-day cooling-off period?

You can cancel your insurance policy after the 14-day cooling-off period, but whether you get a refund, and how much, may depend on:

• How you pay (monthly or yearly)
• Any extras you have (like breakdown cover)
• If the insurer cancels the policy instead of you

As a Saga customer, you can cancel your car insurance after the 14-day cooling-off period. If you haven’t made any claims or had any claims against you, you’ll receive a partial refund based on the time left on your policy. However, arrangement fees won’t be refunded.

If you have a Saga Select or Standard policy, there will be a cancellation fee. For Plus policies, there’s no cancellation fee.

Do I need to cancel my car insurance if I buy a new car?

You don’t need to cancel your car insurance when you get a new car. Instead, you can transfer your current policy to the new car by contacting your insurance provider, either by phone or online.

Make sure the transfer happens on the day you pick up your new car so that you’re always insured. Once the transfer is done, your policy will continue until the existing renewal date.

Keep in mind that your premium might change based on the new car, and there could be an administrative fee.

When should I cancel my car insurance after I’ve sold my car?

You can cancel your car insurance the moment you sell your car, as long as you don’t own it anymore and aren’t getting a new one. If you don’t cancel, you’ll keep paying for insurance you don’t need.

Also, if you don’t cancel right away, someone could claim against your insurance if the new owner is involved in an accident.

Can I cancel my car insurance if I pay monthly?

You can cancel your car insurance even if you pay for your policy monthly. Let your provider know that you want to cancel, and they’ll handle it.

Be aware that, like with annual policies, there might be cancellation fees. This depends on your provider’s terms and conditions.

It’s important to inform your provider directly. Simply stopping your direct debit won’t cancel your policy, and you’ll still owe money.

What do I do if my insurance is cancelled?

If your car insurance gets cancelled, you should contact your insurer and ask why. Common reasons include:

• Missed payments
• A new health issue
• Not disclosing important information
• Fraud

Ask if they can reinstate your policy. If they can’t, you’ll need to get a new policy quickly since you can’t drive without insurance. Be honest with new insurers about your situation. It might be harder to get new insurance, but honesty is crucial as missing or incorrect information can invalidate your insurance in the event of a claim.

If you decide not to drive anymore, declare your car as SORN (Statutory Off Road Notification).