The terms of your policy will determine whether you are eligible for a refund. 14-day cancellation period You have 14 days to cancel your insurance policy if you buy it online or by phone. This is permitted by the Financial Services (Distance Marketing Regulations 2004).
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Your insurance company may deduct any premium refunds from amounts you have already claimed within the first 14 days. You will receive a refund if you cancel your policy within 14 days after receiving it. A deduction will also be made for time that you were covered.
A majority of policies allow for the possibility to charge an administrative fee, which can be very high. For more information, take a look at the policy.
Cancel before the cooling-off period
You may be eligible for a refund if you cancel after the 14-day cooling-off period. You would be subject to a pro rata deduction based upon the amount of time you have been covered. There may also be a cancellation charge. If you cancel after two months, for example, you’d be eligible to a refund of ten months less the administration fee.
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However, this is only true if your premium has been paid in full and as a lump sum.
You may not be eligible for a refund if you pay monthly instalments. Instead, you may be required to pay an additional premium to cover the time that you have been covered and a cancellation fee.
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Car insurance
You must declare that you will destroy any copies of your Certificate of Motor Insurance within seven days of cancelling your car insurance. This is in accordance to the Road Traffic Act 1988.
Motor Insurance Database maintains a list of all vehicles that are insured
You could face a fine or prosecution if your vehicle does not have valid insurance or Statutory Off Road Notification (SORN). Your vehicle could also be seized, seized, and destroyed.
The DVLA introduced Continuous Insurance Enforcement (or CIE) to prevent uninsured motorists from driving on the roads.
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It is important to make sure that your car is covered at all times. If you cancel your insurance policy, you will need to quickly find another one.