Car Insurance Cancellation Letter

Alexandre Desoutter Alexandre Desoutter  updated on September 30, 2020

At some point, you may decide to cancel your car insurance policy. You may have found a better deal to another provider, or it is possible that you have sold your car for some reason. What’s for sure is that one does not always feels comfortable when cancelling a car insurance policy. To avoid problems and miscommunications with your provider, you should always send a written cancellation to your insurance, to make sure that your cancellation is taken into account.

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This a free car insurance cancellation letter template to download or copy

How to write a cancellation letter for car insurance?

Some insurances sometimes find any detail to consider your cancellation request is not valid. That is why, when writing your cancellation letter, you should always check that the following elements appear:

  • The date of notice
  • Your insurance company name and address
  • The appropriate department name
  • Your name, email address and telephone number
  • Your insurance policy number
  • The coverage period of the insurance you wish to cancel


All those elements are mentioned in our our car insurance cancellation letter template. You can download it and fill in the blanks as they are displayed in the document.

Can you cancel an auto policy at any time?

In their great majority, car insurance providers allow cancellation at any time after the subscription of a policy. However, some apply cancellation fees. Others do not automatically refund you the premiums you have paid in advance (for a complete year for example). When sending. your cancellation notice to your car insurance, always ask for a refund.

Can I cancel my car insurance for free?

Cancellation costs should be a criteria when choosing a new car insurance provider. The majority of car insurance providers apply a free cancellation policy. However, some may cover up to £50, or apply a rate on the remaining due premiums (generally 10% of the total amount). Before writing your cancellation letter, you should check your policy on that specific point.

How much is car insurance cancellation fee?

Car insurance cancellation fees can range as low as £25 to much more – in the case when your insurance provider will charge you a percentage of your remaining premiums for example. The amount of your cancellation fees has to be written in your contract, this is where you should find it.

How to avoid car insurance cancellation fee?

Basically, if you wish to avoid fees in the moment when you cancel your car insurance, you should carefully choose your insurance plan in the first place. Indeed, it will always be written in your general terms and conditions whether cancellation fees will be applied or not. So always double-check before signing your contract.

Car insurance cancellation and cooling-off period

The UK law gives consumers a 14-day cooling-off period to turn their mind after having purchased a product or a service. It applies for the car insurance product, that you can cancel for free and without any reason during that cooling-off period. This cooling-off period begins when your policy start if effective, or instead when you receive the documents of your policy from your insurer.

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