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How to get a car insurance refund

September 21, 2021 by

If you’re cancelling your car insurance with time remaining, you can expect to be refunded for any time remaining on the policy that you’ve paid for.

Wondering how to claim that, and how much you’re entitled to? Read through this guide.

Can I cancel car insurance?

Simply put, yes you can cancel your car insurance.

Whether you should or not depends on the circumstances.

If you’re selling your car, you should once it’s been sold so you’re not paying for a car you don’t own — but also don’t do it before it leaves your ownership.

Oh, and if you want a hassle-free way to sell your car, why not tap that green button below? Selling through carwow is easy and convenient without any haggling.

It’s a legal requirement to have at least 3rd party insurance if you’re driving a car on public roads, and you need to be insured to drive it. It’s not advisable then to cancel it if you’re planning to use the car.

If you’re declaring your car SORN and storing it on private property, that’s fine to cancel your insurance for — though keep in mind you’ll get no payouts should something happen to it.

Do I have to cancel my car insurance if I sell my car?

You don’t strictly *have* to cancel your car insurance once you’ve sold it, but then you’ll be paying for something you no longer own.

It’s advisable then to cancel it and, assuming you have time remaining on your policy, you’ll be entitled to some form of a refund so it’s worth a quick phone call to sort.

Can I get a refund on my car insurance?

If you choose to cancel your car insurance policy, and you have time remaining on the policy, you will be entitled to a refund.

How much varies depending on how long is remaining on the policy and the policy terms and conditions.

Most insurers will provide a breakdown of their refund policy in the original documents when you signed with them, although it’s worth a phone call if you’re unsure.

Reasons and eligibility for a car insurance refund

You choose to cancel

You’re entitled to cancel your insurance policy whenever, for instance when selling your car.

How much of a refund you’ll be eligible for depends on a number of factors, including the time remaining on your policy and the conditions set by the insurer.

You made a policy change

If you make a change to your car insurance policy to cut down the costs — for example you’ve added a different car which is less to insure — you could be entitled to a refund.

Again this depends on how long is remaining on your policy and the terms set out by the insurer. It’s worth a call to ask.

Insurer cancelled policy

Insurers can cancel your policy if you’re found to have broken the terms of the agreement. In this case, you could be entitled to a refund but the amount will depend on the time remaining and terms set out by the insurer.

How to check your car insurance status

Your car’s insurance status is available on the Motor Insurance Database. You’re able to see the status of your car on askmid.com by searching its registration.

How much will I be refunded during the 14-day cooling-off period?

If you’ve cancelled your car insurance within the 14-day cooling-off period, you’ll be entitled to a refund on payments you’ve made so far, with deductions for the amount of time you’ve been covered for.

That is assuming you haven’t made a claim within that time, too.

How much will I be refunded after the 14-day cooling-off period?

Once the 14-day cooling period is off, you’re pretty much at the mercy of your insurer for how much you’ll be refunded.

Their specific refund policies will be outlined in the documentation when you sign up though, so you’ll have that 14-day cooling period to decide if you’re happy with it.

How to get a car insurance refund

Getting a refund is as simple as calling your insurer, stating your reason for cancellation and waiting for any refund you may be entitled to.

How long it will take to come through will vary between insurers, but it’s always worth asking them.

FAQ: Car insurance refunds

Can you get a refund on unused car insurance?

You can, though the amount you’re entitled to will vary on the time remaining and your insurer’s policies.

Can I cancel my car insurance if I pay monthly?

You’re able to cancel your car insurance regardless of how you pay it.

Can you cancel car insurance at any time?

You can cancel your car insurance at any time, though the amount you’re refunded will vary depending on the time remaining and your insurer’s policies.

Can I keep my insurance if I sell my car?

You can keep your car insurance if you sell it, but you’ll be paying for someone else’s car at that point. It’s worth the phone call to cancel to avoid unnecessary costs to yourself.

Do you have to pay to cancel car insurance?

You may be charged administration fees to cancel your car insurance, which will vary in cost depending on your insurer.

Does SORN cancel insurance?

Declaring your car SORN will not cancel your insurance, and it’s advisable to keep a SORN car insured just in case something does happen to it.

Do I have to cancel my car insurance if I scrap my car?

You don’t have to cancel your car insurance if you scrap a car, but you’ll be needlessly paying for a policy if you don’t.

What is the cooling-off period?

A cooling-off period is a time companies must offer you to return goods or cancel a service with a no-questions refund. This is typically within 14 days.