Motor insurance policy my advice is read the small print very carefully particularly the section that mentions cancellation rates and fees.

Will i be charged for cancelling my car insurance. Cancelling during your cooling-off period All insurance products are regulated by the Financial Conduct Authority FCA and are therefore subject to a minimum 14-day cooling-off period. The cost of cancelling your car insurance policy varies considerably it can be free for some people but others may be subject to an admin or cancellation fee. Youre entitled to cancel your insurance if you dont need it if you sell your car for instance.

Cancelling monthly car insurance You can cancel monthly car insurance early but you will usually have to pay. If you cancel after 14 days we will return any premium paid less a charge for the number of days for which cover has been given and an administration fee of 4816 for Car Insurance and 1120 for Breakdown cover. Generally speaking if you cancel within the first 14 days most insurance companies wont charge a fee for cancelling but be aware that some will.

FOS says insurers can charge a pro-rata premium for the time on risk in your case a day plus an admin fee which has to be proportionate to the cost of cancelling the contract. Cancelling your new or renewing policy If you or we cancel a policy any fees such as the arrangement fee incurred before cancellation are non-refundable as is the cost of your insurance for the number of days youve been insured Cancelling within 14 days of your policys start date No cancellation fee. How much it costs you to cancel your car insurance or whether it costs anything at all depends on a range of.

Compare Over 120 Car Insurance Brands in Minutes. And if you took out your car insurance policy via a broker be aware that the broker could charge you a cancellation fee as well as the insurance provider. In the case of my insurance policy it turns out that the cancellation fee is pro-rata plus one month.

If you paid for the cover upfront you should receive a pro-rata refund for the time remaining on the policy. Most companies that charge a fee bill you for 50 or 10 of your remaining premium if you need to cancel before your renewal. However the refund can be very small and cancellation fees can wipe it out completely.

However fees for cancelling early vary widely ranging from 0. The average UK car insurance cancellation fee is 24 during the 14-day cooling off period and 55 after the cooling off period. But you will be charged for the time when the policy was active and you may also have to pay an administration fee so check the terms and conditions of the.