Whether you’ve declared your car as SORN, sold your car, or have simply renewed your car insurance early elsewhere, you’ll need to cancel your existing policy.

Section 1: Why you need to cancel your car insurance policy

Many of you will think this article is absolute bollocks – ‘what’s the point of doing that?’. Here are three reasons:

1. Because you want your car back.

This might be the case for you, or you might be about to buy a car from a stranger. Either way, you’ll be looking for somewhere to park your new car that’s safe, comfortable and easy to get to.

For most new car buyers, a ten minute journey is a completely reasonable commute. But if you live in an area with bad traffic or the school run is a nightmare, then maybe it’s not so easy.

An experienced mechanic can help you with an MOT certificate on a great car. Some dealers might also be able to make your car a bit safer with a more comprehensive car warranty – see our full guide for full details.

2. You want a better car insurance quote.

What to do if you’re upgrading your car

Depending on the circumstances, you may not need to cancel your existing car insurance policy at all. However, when you’re planning to buy a car and switch your insurance, it’s best to cancel the existing policy. This way, you can avoid paying unnecessary premium over the life of the car, which you may need to pay when you buy the new car.

And if you’re thinking of buying an older, low mileage car to upgrade your insurance in the future, you’ll need to cancel your existing policy.

If you bought a new car and didn’t cancel your insurance before the first year ended

If you had a brand new car and didn’t cancel your insurance before the first year ended, your insurer will still know that you’ve just bought a new car, and will raise your premium accordingly.

What to do if you no longer have a use for your vehicle

However, if you no longer have a car but still want to keep your policy, there are a few things you can do.

Of course, if you have a large policy, you’ll need to re-consider whether or not you still need to continue paying the premium.

If you’ve invested a lot in your car, or the insurance has been a life-saver when other bills needed to be paid, it may be worth keeping it on until you’ve sorted out other financial issues.

However, if your driving and expenses are inconsistent, or you’re renting your car out to car-share companies, it may be time to find a new car insurance deal.

How to cancel your car insurance policy

For car owners who have bought their car and paid off the insurance, you’ll need to contact your insurer to cancel the policy.

This is an important step.

What to do if you’ve sold your vehicle already or declared it SORN

If you’ve sold your vehicle already, you need to report that sale to your insurer immediately. They’ll need proof that the sale went through, such as an invoice. But as it’s relatively easy to dupe insurers into believing you’ve sold your car when you haven’t, you may not have to give them proof.

You’ll also need proof that you’ve declared your car SORN. Not declaring your car SORN is a big mistake, as it leaves you open to prosecution. But if you’ve taken your car out of a specified parking area, or you’ve had it on a public road, you should be covered by your insurance.

How to cancel your car insurance policy

Car insurance contracts expire on 31st December, but if you’ve already renewed your insurance elsewhere, you don’t have to cancel it until your next policy.

How to cancel your car insurance policy

We’ll talk you through the steps you need to take when cancelling your insurance policy with one of the UK’s most popular insurers, so that you can get your money back quickly and easily.

But before we begin, it’s important to understand why you’d cancel a car insurance policy in the first place, and what you could lose if you don’t.

What happens to the premiums you’ve already paid?

What’s the main issue here? Once you’ve entered into a contract to insure your car, you can’t simply give your policy up and leave the provider without incurring a £250+ termination fee.

You’ll also be liable for any outstanding premiums that have accrued over the past 12 months.

It’s true that if you cancel your policy, you can always re-claim the premium.

Conclusion

Car insurance is very necessary, as the presence of an insurance policy protects you from getting into an accident and exposing your personal and family assets to the long-term damage that you could incur. If you’re yet to do it, here’s a quick checklist to follow:

Do a quick check on your policies.

If you’re paying a monthly fee for your car insurance and if you don’t own the car, you can cancel it in as little as a month by simply contacting your insurer. Even if you do own the car, you can cancel the policy early without any premium cost. Of course, if you’re insured with a trading company, the chances are that you’ll need to take up an offer from them and pay a small fee to cancel your policy with them.