Cancelling an insurance policy is a big consideration because you won't earn your No Claims Discount for the year and you'll have to pay a cancellation fee.
1. When you cancel the policy
Your policy will end on the date you choose (but if we've given you a deadline to cancel voluntarily, it must be before that date). You can also choose for your policy to end immediately.
If you've made a claim during the policy year, you'll need to pay your full premium - this means you wouldn't get your premium refunded if you paid upfront, or you'll need to keep up your payments if you chose to pay monthly. This is standard across the whole insurance industry.
If your claim is settled as non-fault later, we can calculate your refund from your cancellation date and reinstate any No Claims Discount you had built up.
2. Any refund that's due
If you're due a refund for the time left of your policy, you'll typically get that back in five to 10 working days.
Your refund is based on how much of your policy you've used and any deduction of applicable fees. If you have an amount to pay, it will be collected after the cancellation date.
Check your 'Fees' document in your app for which fees will apply, as there are lots of different scenarios. You can also find them in your policy wording online at either ticker.co.uk/policy-wording or rac.ticker.co.uk/policy-wording.
3. If you have a loan agreement from PremFina
Do not cancel your direct debit with PremFina. The finance agreement will be cancelled by them and you'll be notified.
It's very important you don't cancel the direct debit in case there is an outstanding amount you need to pay. If they can't collect a payment, they will consider that as debt. Cancelling your direct debit could also affect you receiving any refund smoothly.
4. Returning your telematics device
Shortly after your cancellation date, we'll send you a prepaid envelope to return your device. Postage is already paid and the envelope is addressed, so you just need to put in the device, seal the envelope and pop it in a post box.
Please don't remove your device until the actual policy end date.
5. Once your policy has ended
After the policy end date you choose, we can't reverse your cancellation. You need to make sure you have alternative insurance by this date.
Proof of No Claims Discount
We'll email you proof of any previous years of No Claims Discount when your policy ends, but you can use your renewal invite in the meantime if we've sent you that.
If you're cancelling before you've had your renewal invite from us, you should use your documents from your previous policy as proof of NCD for your next insurer.
Remember: you can't declare a year's NCD for the policy you're cancelling as it's not a complete year. Cancelling your policy before the end of the policy terms means you lose the NCD you had built up.