Most consumer general insurance policies have a 14-day cooling-off period, although charges may apply if cover has already started.
A cooling-off period gives you time to review an insurance policy after entering into the contract. During this period, you can usually cancel without giving a reason.
Under the FCA’s insurance cancellation rules, most consumer general insurance contracts have a 14-day cooling-off period. This includes many annual car, van and home insurance policies.
Some products have different rules. Certain short-term policies, including some travel and baggage policies lasting less than one month, may not have the standard cancellation right. An insurer or broker can also offer a longer period on terms that are at least as favourable to the customer.
For most general insurance, the cooling-off period starts from the later of:
These dates may not be the same as the date your cover starts. The FCA rules on when the cancellation period begins mean it is important to check your documents and keep a record of when you received them.
Your policy wording, schedule and terms of business should explain the deadline and how to cancel. You should also review the documents sent with an insurance quote before buying cover.
A new cooling-off period may also apply at renewal, depending on the contract. Check the renewal notice for the dates and terms that apply.
Cancelling during the cooling-off period does not always mean you will receive a full refund.
If cover has already started, the insurer may charge for the number of days it was providing cover. Under the FCA rules on cancellation charges, this amount should be proportionate to the service provided and must not be used as a penalty.
An insurer or broker may also charge reasonable administration costs. These costs should reflect work carried out, such as arranging or cancelling the policy. Any charges and their effect should have been explained before you bought the cover.
Where money is due back, the FCA requires it to be returned without undue delay and no later than 30 days after the cancellation notice is received.
A claim can also affect the amount due. Depending on the policy terms and the circumstances, you may have to pay more of the annual premium after making an insurance claim.
Check your policy documents to find out:
Contact the insurer or broker as soon as possible. Follow the method stated in your documents, which could be by telephone, email, online account or written notice. Keep proof of the request and ask for written confirmation.
Make sure any replacement cover is ready before cancelling an existing policy.
A car or van used on a road or in a public place must have valid motor insurance. A registered vehicle must also normally remain insured unless it is kept off the road and covered by a Statutory Off Road Notification (SORN). You can read the GOV.UK rules for uninsured vehicles before cancelling car insurance or van insurance.
Buildings insurance is not usually required by law, but a mortgage provider will normally require suitable cover. MoneyHelper explains the insurance commonly needed when buying a home. Cancelling home insurance without replacement cover could therefore leave your property uninsured or breach your mortgage conditions.
