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What are the consequences of cancelling my policy?

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Written by Ticker
Updated over 2 weeks ago

Cancelling your car insurance policy before the end of the policy year should be a considered decision, because there are consequences.

Check you understand these before you chat to us to cancel.

Consequences of cancelling your policy during the year

  • No Claims Discount: cancelling mid-term means you won't earn your No Claims Discount for the policy year because you won't have been insured for the full year. Any NCD earned in previous full policy years will still be valid.

  • Fees: there are various fees that can apply for cancellation. These fees are determined from your policy terms and when you cancel.

How your refund works if you cancel your policy

If you paid upfront

Any refund is calculated on a pro-rata basis - this means you get a refund for the unused time left of the policy. This amount then has any fees deducted from it

If you pay monthly

Your payments will stop, but you will need to pay any fees associated with cancelling the policy.

If you've made a fault claim

If you've made a fault-claim during the year, you won't get a refund for time left of the policy; monthly payers are obliged to pay the full outstanding premium.

These are standard refund terms for insurers.

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