Trustpilot
Show More

Will I Get a Refund If I Cancel My Car Insurance? - Money Expert

Enter registration no. (optional):

UK Flag Icon
Retrieve an existing quote

Will I Get a Refund If I Cancel My Car Insurance? - Money Expert

You can get a refund if you cancel your car insurance, but how much you’ll get depends on when you cancel and how you pay.

When you take out a car insurance policy, you have what’s called a 14-day cooling-off period during which you can cancel. If your policy hasn’t actually started, then cancelling within this period means you’ll get a full refund. Once your policy has started, if you’re still in the cooling-off period then you still get a refund but it won’t be for the full amount – the price of the days of cover you’ve already enjoyed will be deducted.

If you cancel your car insurance outside this cooling-off period, then you could still receive a partial refund. This’ll depend on how long you have left on your policy. Typically, insurers won’t refund the final two months of a policy, so for example if you cancel with five months left, you’ll only receive three months of premium payments back. Check what your terms are though, as each insurer is different.

Bear in mind, too, that this only applies to if you’ve paid for your insurance upfront. Should you pay by monthly instalments then it’s possible you won’t be entitled to a refund; instead you may have to pay an adjusted premium and even additional charges. Any car insurance add-ons you have are also non-refundable.

Always carefully consider whether cancelling your car insurance is worth it. Not only will you likely have to pay administration fees, you’ll forgo any no claims bonus you’d receive if you hadn’t claimed on your insurance that year.

You may find your insurer won’t offer you a refund. In this case, you can make a formal complaint via their official process. If the case still isn’t resolved, you can contact the Financial Ombudsman.

*51% of consumers could save £518.14 on their Car Insurance. The saving was calculated by comparing the cheapest price found with the average of the next five cheapest prices quoted by insurance providers on Seopa Ltd’s insurance comparison website. This is based on representative cost savings from June 2025 data. The savings you could achieve are dependent on your individual circumstances and how you selected your current insurance supplier.

Related guides

How to Insure a Car You Don’t Own?

Whether you don't drive often or don't have access to your own car, sometimes it may be necessary to drive someone else's car or vehicle. But what happens when you need insurance for that situation? Here’s what you need to know.

10 driving habits you should avoid

While we all like to think of ourselves as faultless drivers, there is a long list of bad habits that anyone can pick up, putting you at risk on the road, as well as annoying other drivers and passengers. While it's unlikely anyone passed their driving test with all of these bad habits, it pays to do your best to avoid them when you can!In no particular order, here are our top 10 bad habits you should avoid on the road:

Using Your Own Car for the Driving Test: What You Need to Know

Are you preparing to take your driving test? Many learner drivers are now opting to use their own vehicle or a family member’s rather than their instructor's car. It’s a choice that can boost confidence on test day, especially if you’re more comfortable behind the wheel of a familiar car.However, there’s more to it than just turning up in your own car. From DVSA rules to insurance, there are a few important things to check — including whether your car is actually insured for the driving test. Let’s take a look at everything you need to know to make sure your vehicle is eligible, safe, and fully compliant before you arrive at the test centre.