Cancelling car insurance in the UK can be done at any time, and typically involves a cancellation fee (which is likely to be higher after the 14-day cooling off period) and either a refund on your prepaid premium or additional premium owed if you pay monthly. Here are typical car insurance cancellation costs to help you understand what you're paying.
- How much does it cost to cancel car insurance in the UK?
- Do you get a refund when you cancel car insurance?
Average Car Insurance Cancellation Fees UK
The average UK car insurance cancellation fee is £24 during the 14-day cooling off period and £55 after the cooling off period. However, fees for cancelling early vary widely, ranging from £0 to £125 or more.
|Car Insurance Cancellation Fees UK||Low||High||Average|
|Within 14-day Cooling-off Period||£0||£100 (£247 for telematics)||£24|
|After 14-day Cooling-off Period||£0||£125 (£155 for telematics)||£55|
Black box policies typically cost more to cancel than policies without a telematics requirement—this is primarily due to the costs of supplying and fitting the black box.
Car Insurance Cancellation Fees UK
To calculate the average cost to cancel car insurance, we checked administration fees from 42 leading UK car insurance brands. In the table below we show the standard cancellation fees we found, by brand. Telematics policies, in particular, may charge higher fees than we've listed.
Note that some brands like Aviva and Debenhams charge less during the 14-day cooling off period if your cover hasn't started yet and more if cover has started. Telematics cancellation fees are noticeably higher, which you can see with General Accident, Ingenie and Admiral brands including Bell, Diamond and Elephant.
|Brand||Within 14-day Cooling-off Period||After 14-day Cooling-off Period|
|Acorn||£0||£50 within 15 - 30 days, £100 after 30 days|
|Admiral||£25 (£75 Plug & Drive, £125 LittleBox/Safe Driver)||£55 (£105 Plug & Drive, £155 LittleBox/Safe Driver)|
|Age Co (Age UK)||£0||£0|
|Aviva||£0 (or £38 if cover has started)||£38|
|Bell||£25 (£75 Plug & Drive, £125 LittleBox/Safe Driver)||£55 (£105 Plug & Drive, £155 LittleBox/Safe Driver)|
|Debenhams||£25 (or £35 if cover has started)||£75|
|Diamond||£25 (£75 Plug & Drive, £125 LittleBox/Safe Driver)||£49.50 (£99.50 Plug & Drive, £149.50 LittleBox/Safe Driver)|
|Elephant||£25 (£75 Plug & Drive, £125 LittleBox/Safe Driver)||£49.50 (£99.50 Plug & Drive, £149.50 LittleBox/Safe Driver)|
|General Accident telematics||£25 (or £100 if telematics device has been installed)||£125|
|Go Girl||£45||£25 plus cancellation scale of premium|
|Ingenie||£35||£35 (+ £105 if a telematics box has been installed)|
|Marmalade||£0 to £35||£50 to £100|
|MyPolicy||£75 to £247||£75|
|One Call||£34.99 to £49.99||£55.99|
Do you Get a Refund if you Cancel Car Insurance?
The insurer will calculate if they owe you a refund on your premium (say, if you prepaid in full) or if you owe them some premium for time you've been covered (if you pay monthly). Most brands will make these calculations on a pro rata basis, which essentially means you pay a proportionate amount for the time you were covered (e.g., 1/365th of the premium per day of cover).
However, a few brands calculate premium owed or to be refunded using a scale (not pro rata) which means you'd pay MORE for the time covered. For example, Go Girl charges 20% of the premium if you cancel within the first month, as you can see in the premium scale below.
|Go Girl Cancellation Scale||Percentage of Premium Payable|
|Up to 1 month||20%|
|Up to 2 months||28%|
|Up to 3 months||36%|
|Up to 4 months||44%|
|Up to 5 months||52%|
|Up to 6 months||60%|
|Up to 7 months||68%|
|Up to 8 months||76%|
|Up to 9 months||84%|
|Up to 10 months||92%|
|Above 10 months||100%|
Car insurance cancellation if you've made a claim
If you've already made a claim, the premium calculations are quite different. If you have made a claim and cancel during the 14-day cooling off period, your insurance company can deduct the sum paid out from the refund of the premium. If you have made a claim and cancel after the first 14 days, you will still owe the entire premium for the whole policy year.