When you cancel your insurance policy, there are a number of factors that determine whether or not you are eligible for a refund. One of these factors is the terms and conditions of your policy.
Can I get a refund if I cancel my insurance?

14-day cancellation period

If you buy your insurance over the phone or online, you have 14 calendar days, starting from the day after you enter into the contract, to cancel your policy and receive a full refund.

The Financial Services (Distance Marketing Regulations) from 2004 stipulate that you are qualified for this benefit.

If you have already filed a claim during the first 14 days of the policy, your insurance provider has the right to deduct the amount of the claim from any money that is refunded to you.

If you cancel your insurance policy within the first 14 days of receiving your policy documents, you will be eligible for a refund, however the amount will be reduced by the amount of time you were actually covered by the policy.

In addition, the vast majority of insurance policies retain the discretion to assess an administrative cost, which can be rather pricey. Have a look at the policy for further explanation.

Cancel outside of the period for requesting a refund.

If you decide to cancel your policy after the initial cooling off period of 14 days has passed, then you may also be eligible for a return of the premium that you paid.

In a normal circumstance, this would be subject to a deduction calculated on a pro-rata basis according to the amount of time you have been covered, and there may also be a cancellation fee. For instance, if you cancelled your subscription after the first two months, you would be eligible for a refund for the remaining eight months, less the administration cost.

This, of course, will only be the case if you have paid your premium in one continuous and complete instalment.

It is possible that you will not be eligible for a refund if you choose to pay using monthly instalments. It is possible, however, that you will be asked to pay an additional premium to cover the time you have already been covered, in addition to a cancellation fee.

Car insurance

In compliance with the Road Traffic Act of 1988, you will be required to make a declaration when you cancel your auto insurance that you will destroy all copies of the Certificate of Motor Insurance that is related to your policy within seven days of making the cancellation.

The Motor Insurance Database is responsible for maintaining a database of all vehicles that are currently covered.

In the event that your car does not have current insurance or a Statutory Off-Road Notification (SORN), you run the risk of being fined or prosecuted, and your vehicle may be clamped, seized, or even destroyed if it is not properly registered.

Continuous Insurance Enforcement, abbreviated as CIE, is a programme that was initiated by the DVLA with the intention of removing uninsured motorists from the road.

It is imperative that you always make sure that your vehicle is covered; hence, if you do decide to cancel your insurance policy, you will need to obtain another one as soon as possible.