Car Insurance Cancellation Fees
Do all car insurance companies charge cancellation fees?
Most insurers will offer a 14 day cooling off period, beyond that if you decide to cancel a policy mid-term most insurers will charge a cancellation fee. The insurer would have calculated the premium plus all other associated costs on the basis that the policy will be in force for one year. This cancellation fee will apply whether you pay monthly, or have paid in full up-front. The charge covers the additional administration costs due to the midterm cancellation of the policy.