How to cancel your car insurance in the UK

When you cancel your car insurance, your policy ends immediately or on a requested future date, but you may still owe a fee and lose any unused premium.

You’ll also be uninsured unless you’ve arranged alternative cover or no longer own the vehicle.

While cancelling seems like a clean break, insurers don’t just press delete. If you cancel mid-policy, they’ll usually recalculate your premium based on time used, subtract any discounts that no longer apply, and deduct an administration fee before issuing a refund—if one’s due. In some cases, especially if you’ve made a claim, you won’t get anything back at all.

There’s also the question of insurance history. Some providers ask whether you’ve ever cancelled a policy, and a “yes” can impact your future quotes. This is especially true if the cancellation was forced due to non-payment or a misrepresentation.

And then there’s legality. Unless you’ve declared your car SORN or sold it, it must remain insured under Continuous Insurance Enforcement. Failing to cover it—even for a day—could trigger fines or prosecution from the DVLA.

UK law gives you 14 days to cancel your car insurance and receive a refund, minus a pro-rated charge for time covered and an administration fee.

This period begins when your policy starts or when you receive the policy documents—whichever is later.

This “cooling-off” period is part of your statutory rights under the Financial Conduct Authority (FCA) regulations. It exists to let you change your mind without a long-term penalty. But it’s not a free pass—you’ll still be charged for the days the cover was active, and most insurers also deduct an admin fee, typically £25–£60.

If you’ve bought add-ons like breakdown cover or legal protection, those may be refunded separately or partially, depending on usage. If you’ve made a claim during the cooling-off window, you can still cancel, but you probably won’t get a refund—and your insurer may treat the full premium as payable.

It’s also worth knowing that cancellation requests must be made in writing or via the approved channels (like your online account or customer service line), and some policies don’t consider the request valid until it’s been acknowledged.

Yes, you can cancel your car insurance after making a claim—but you won’t receive a refund and the full premium is usually still owed.

Your claim may also impact future quotes and your no-claims bonus.

This catches many drivers out. Even if you cancel halfway through a 12-month policy, once a claim has been made and accepted, your insurer typically treats the full annual premium as earned. That means no refund—even if you paid in full—and you may still be charged a cancellation fee.

It also affects your no-claims discount. Some providers will void your entire year’s bonus if you cancel early after a claim, even if you were building up to another full year. That’s a costly loss if you’re switching providers or starting fresh.

Let’s take a real-world scenario:

You insure your car in January, have an accident in March, and then cancel in April. The insurer paid out for the repair. Regardless of how much you paid, your refund is £0—and your policy may now be flagged as cancelled with a claim, which can make some future insurers cautious.

Cancelling post-claim is legal, but it’s rarely financially worthwhile.

You don’t legally need proof of alternative insurance to cancel your policy, but your vehicle must be continuously insured or declared off the road (SORN) to avoid penalties.

Under Continuous Insurance Enforcement, all vehicles in the UK must be insured at all times, unless they’re officially declared off the road through a Statutory Off Road Notification (SORN). Cancelling your policy doesn’t remove this legal requirement—it just ends your cover.

Insurers won’t usually demand proof of a new policy before they let you cancel. But if there’s any gap in your cover, even for a single day, the DVLA and Motor Insurance Database may flag your vehicle as uninsured. This can lead to an automatic penalty: a £100 fixed fine, possible vehicle clamping, or even prosecution if ignored.

So while you don’t have to send proof, you do need a plan. If you’re switching insurers, make sure the new policy starts on the same day the old one ends. If you’re no longer using the car, SORN it immediately via GOV.UK to stay within the law.

The easiest way to cancel your car insurance is to contact your insurer before the renewal date and tell them not to auto-renew your policy.

This avoids cancellation fees and allows a clean break at the end of your contract.

Many UK policies are set to renew automatically unless you say otherwise. While this protects against accidental lapses, it also means you could be charged for a new policy you didn’t want. That’s why it’s essential to notify your insurer—ideally a few days before renewal—that you won’t be continuing.

Most providers allow you to do this by phone, email, or online portal. Some require formal notice, while others may simply need a toggle switch in your account. Once confirmed, your cover will end at the close of your current term, and there’s nothing further to pay—assuming all instalments are up to date.

Note: if you’ve paid annually, you won’t get a refund for unused days after renewal unless you cancel that new policy—and that often comes with fees. Better to opt out in advance and switch cleanly.