What to know about cancelling car insurance

Published on 14 December 2023

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?
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.

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.
There are many reasons you could be looking to cancel your car insurance. Maybe you sold your car and you don’t plan on getting another one right away, if at all. After the 14-day cooling-off window, you may be charged a fee for cancelling your car insurance so it's worth making sure you plan ahead and get the cover that's right for you.

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. 
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