Section 1: What you need to do
The first thing you need to do is to cancel your existing car insurance policy.
If you don’t want to just cancel it, you have to make sure your existing policy is cancelled before you use your car.
The most likely reason you need to cancel is due to having another car insurance policy. Let’s say you had a £1,000 premium with a national provider, but you’re now with a provider with an introductory deal for £500 a month, then you need to cancel that new deal too.
The old insurer should write to you, informing you of the cancellation and send you an application form. This can take a while, so bear with them if they haven’t already done so, and allow them enough time to send the form, if it’s still on their system.
How to cancel your policy
There are three ways to cancel your insurance policy. These are:
Ignore your policy and it will be cancelled as soon as your policy lapses
Ignore your policy and it will be cancelled when you go through your renewal
Ignore your policy and it will be cancelled as soon as you drive off the road
Do you know that even if your car is with a shop, a dealership or another third party owner, you’ll still need to keep paying for the whole of the year until your car is returned? The same rules apply.
Cancelling your policy
If your car is parked on the drive when your insurance lapses, it’s difficult to make the change quickly.
You’ll need to claim an unauthorised change of address with your bank and notify your insurer.
Be aware of your deadline
Don’t miss the deadline for cancelling your insurance – you’ll then be charged a penalty fee as well as being denied the right to claim on your insurance from the new insurer.
Your end date to cancel is usually the following business day after you’ve renewed your car insurance – so if you renewed today and paid by credit card, the end date is today (3 July) 2017.
Refunds for non-claims
If you’ve cancelled your car insurance before expiry, you’re likely to get a refund for all unused insurance cover.
But make sure you keep your cover
Most companies make you keep your cover for at least a month after cancellation, but after that, it’s a free-for-all.
Be sure to keep your own vehicle insured with one company and call up your insurer and ask if they still want to cover you.
Ask if there are any fees involved
Whether it’s for replacing your car or reclaiming the vehicle, be sure to check if you’ll have to pay for any of the costs involved. One thing to note is that you may not be legally able to claim the cost of a car, so take this into account if you sell your car as a ‘runaway’ vehicle.
However, be careful that you don’t over-negotiate this as you could end up going into debt with car insurance companies if you fail to pay the full premiums.
Alternatively, with no excess fees and the ability to bring in extra cover if you’ve changed a spouse or family member to name, you could get by without a car insurance policy at all and opt for a private vehicle hire scheme, for example.
Avoid fraud charges
It can be difficult to cancel your policy and avoid fraud charges in the process. Read our top tips below for tips on cancelling your car insurance and avoiding fraud charges:
All you need to do is cancel your policy online, call your provider or go to the address listed on your policy document. Any new premium that has been paid will be refunded back to you.
Don’t cancel your car insurance too late
Unscrupulous fraudsters may use your cancelled policy as a means to get access to your personal information and to plunder your savings. With insurance, every extra second you lose by not cancelling earlier is a second you’re paying more.
It’s also important to remember that anyone can cancel your policy at any time.
This is a must-read article if you’re in need of information on how to cancel your car insurance policy. You’ll not only learn about various strategies to cancel a policy, but you’ll also learn how to avoid potential pitfalls. So, read on and learn how to cancel your car insurance policy in a stress-free way!
More Car Insurance Articles
The various car insurance policies have been put under intense scrutiny by the Government in recent years, mainly because of premiums which are often double what you paid last time. Therefore, if you have any question about how to cancel your car insurance, you might find the following articles helpful:
Why It’s Hard to Get an Insurance Quota For Your Car
If you need to cancel your car insurance, you have the choice of following various payment plans.