Answer:
Yes, you can cancel your car insurance at any time. However, depending on when you cancel, you may have to pay a fee.
If you cancel within the first 30 days (cooling-off period): Most insurance policies include a “cooling-off period” or “right of withdrawal” lasting 14 to 30 days from the start date. If you cancel within this period, you will receive a full refund with no penalty.
If you cancel after 30 days
After 30 days, the penalty depends on your policy. Most insurers charge an early-cancellation fee, usually 10% to 25% of the remaining premium.
Example: You paid €600 for a year. After 6 months, you have €300 left. With a 15% penalty, you get €255 back.
Now, let’s look at situations where you won’t face penalties:
- If you cancel at your renewal date, simply do not renew. There is no fee.
- If you sell your car and buy a new policy, most insurers refund the unused portion without penalty.
- If you move to another country and provide proof, most insurers issue a refund without penalty.
- If your insurer unfairly raises your premium, some policies let you cancel at no charge if the increase exceeds a certain percentage.
Here’s a step-by-step guide to canceling your insurance:
Notify cancellation in writing by email or certified letter, and keep a copy. Phone calls are not always recorded.
3. Give the notice period required by your policy. Some require 15 or 30 days’ notice.
Get new insurance before canceling your existing policy. Avoid any gap in coverage.
Request your refund if you are owed money. Refunds are not always automatic.
What NOT to do:
- Do not stop paying to try to cancel. The insurer will pursue you for the debt.
- Do not cancel without having new insurance in place. Driving uninsured leads to fines (€600 to €3,000) and loss of license points.
In summary, to minimize costs and risks when switching insurance, time the switch to your renewal, or, if you can’t, weigh penalties against potential savings from a new policy.
