If you’ve suddenly found yourself without a car you might be thinking that there’s a chance to cut back on some of the regular outgoings – particularly if you pay for your insurance by the month. Can you cancel your policy early, and can you get a refund? Read on to find out.
But first, if you’re in need of a quick and simple way to get rid of a car that simply doesn’t work anymore, then Scrap Car Comparison is here to help. We scour the market to find the very best price for your car, and we’ll even come and collect it for free directly from your driveway. All it takes is 60 seconds on our quote generator to see how much your car could be worth.
Can I cancel my car insurance?
Yes you can, and you can cancel at any point throughout your policy. However, remember that cancelling your policy during your renewal window will likely be the only time that it’s free to do so. Most insurers will place a cancellation fee on policies that are terminated before the end of the agreement.
Do I have to tell my insurance company if I scrap my car?
Telling your insurers that you’ve scrapped your car may not be a legal requirement, but it could cost you in the long run if you don’t – especially if you’re paying monthly. Yes, you might incur a cancellation fee, but if you’ve still got a long time left on your policy, you might end up paying more overall if you keep the policy active. If you’re still planning to drive a different car, then you could also move your policy across from the old car to the new one.
Can I get a refund on my car insurance?
Whether or not you’re entitled to a refund will depend on how you pay for your policy. If you pay annually then there is a chance you may be able to get some money back, but if you pay on a monthly basis then your insurers will likely just cancel any future payments.
Can I claim insurance back if I scrap my car?
Just like selling your car to another driver, once the scrap dealer has come to collect your vehicle and you’ve signed the relevant sections of the V5C log book, then your car is no longer yours. This means you’ve no need for it to be protected by insurance and you can simply get in touch with your insurance provider to cancel.
Don’t worry about the cover for your vehicle as it makes its way to the scrap yard – it’s now the responsibility of the scrap yard, which will have all the necessary insurance required for the vehicle’s final stages.
How do I cancel the insurance policy for my car?
Cancelling your car insurance policy is actually relatively simple, and all you need to do is phone the customer service helpline of your insurer – some allow online cancellation but most would prefer to speak to you directly. Almost all insurance phone lines will have a dedicated cancellations line, and will be able to talk you through the process. Keep in mind you’re likely to incur both administration and cancellation fees, however.
How do I reclaim my car insurance?
Getting your money back from your insurers is usually a simple process that’s taken care of during the cancellation call. The agent should talk you through all aspects of cancelling your policy, including whether or not you’re entitled to any money back, and how you will go about being repaid. It is unlikely you’ll need to provide any paperwork and the money should land in your account within five to ten working days, although this varies from insurer to insurer.
Can I cancel my car insurance if I’ve made a claim?
You can cancel your insurance policy if you’ve made a claim, but don’t expect any money back. Unfortunately, because the insurers have already paid out, it’s unlikely that you’ll be eligible for a refund. If you paid upfront then it’ll just be a simple case of cancelling the policy and moving on, but if you pay monthly you should expect to have to continue making the monthly payments, or you could pay it all off in one lump sum.
If I scrap my car, when should I cancel insurance?
Scrapping as soon as possible increases any chances you have for a refund, as if you wait a month or two before you cancel it you’re effectively throwing money away for no reason. However, if you are going to cancel your policy, make sure that your car has actually gone first. If you cancel before the car has been collected and it’s parked on the road, you could be stung for having a car on the road with no insurance, even if you have no intention of driving it.
If your car is destined to never move again and you’re looking at finding a way to scrap it before cancelling your insurance, then Scrap Car Comparison is the place to do it. We have a team of experts on hand to get you the very best price for your car, and with collection agents operating in 99% of all UK postcodes, we’ll even throw in a free collection. Get started today with our online quote generator or call the team and find out just how much your car could be worth in as little as 60 seconds.