Many drivers wonder if they can switch their car insurance before their policy expires—whether to get a better deal, take advantage of a new provider’s discounts, or adjust their coverage. While it is possible to change car insurance partway through a policy, there are several factors to consider, such as cancellation fees, potential refunds, and the best time to switch.
In this guide, we’ll explain everything you need to know about changing your car insurance in the UK, including how to switch providers without paying unnecessary charges.
Can You Change Your Car Insurance at Any Time?
Yes, you can change your car insurance policy at any time in the UK, but whether it's financially beneficial depends on several factors. Most car insurance policies allow cancellation before the term ends, but you may have to pay a fee.
Common reasons drivers switch car insurance include:
Finding a cheaper deal with another provider.
Needing different coverage (e.g., upgrading from third-party to fully comprehensive).
Buying a new car that changes insurance needs.
Wanting better customer service or claims support.
Before cancelling your existing policy, it’s important to check for any cancellation fees or refund policies. Some insurers charge a penalty for early termination, while others may refund unused premiums.
Will I Have to Pay a Cancellation Fee?
Most insurers charge an early cancellation fee if you end your policy mid-term. This fee can range from £25 to £75, depending on your insurer.
Here’s what to expect:
During the 14-day cooling-off period – If you cancel within 14 days of taking out a new policy, you are entitled to a full refund minus admin fees (typically £25–£50).
After 14 days – Most insurers will refund unused months, but a cancellation fee applies.
If you’ve made a claim – Some insurers won’t issue a refund if you’ve already made a claim within the policy term.
Tip: Check your insurer’s cancellation policy before making any decisions. Some providers, such as Compare the Market or MoneySuperMarket, offer car insurance comparison tools to help you find better deals without hidden fees.
How to Change Your Car Insurance Provider Midway Through a Policy
If you’ve found a better deal and want to switch, follow these steps to ensure a smooth transition:
Step 1: Compare New Insurance Quotes
Before cancelling your current policy, use a car insurance comparison website such as:
Confused.com – Compares multiple insurers to find cheaper deals.
GoCompare – Offers car insurance policies with added benefits.
MoneySuperMarket – Compares top UK insurance providers.
Tip: Look for providers offering no cancellation fees or switching incentives to save money.
Step 2: Check Your Current Policy for Fees
Before switching, review your existing car insurance policy and check:
Cancellation fees – Are there any early termination penalties?
Refund policy – Will you receive a refund for any unused months?
No-claims bonus impact – Will switching affect your no-claims discount?
Step 3: Arrange Your New Policy Before Cancelling
It’s crucial to never have a gap in insurance coverage, as driving uninsured is illegal in the UK. Before cancelling, confirm that your new policy starts immediately after your old one ends.
Step 4: Cancel Your Current Policy
Once your new insurance is active, contact your current insurer to cancel. You may need to provide:
Your policy number.
Proof of your new insurance.
Payment for any cancellation fees.
Tip: Some insurers allow policy transfers if you’re switching vehicles instead of cancelling outright.
When Is the Best Time to Change Car Insurance?
The best time to switch car insurance is when your renewal date is approaching. This allows you to avoid cancellation fees and get the best deals.
How to Get the Best Renewal Deals:
Start comparing insurance quotes 3–4 weeks before your renewal date.
Check for loyalty penalties – Some insurers increase prices for existing customers.
Call your current provider and ask for a price match if you find a better deal elsewhere.
Tip: Some insurers offer discounts if you switch at renewal rather than mid-policy, so always check before cancelling early.
Does Switching Car Insurance Affect My No-Claims Bonus?
Your no-claims bonus (NCB) is a discount for driving without making a claim. If you cancel mid-policy, you may lose that year’s progress unless your new insurer accepts part-year NCB transfers.
To protect your NCB:
Ask your current insurer whether they will provide proof of your no-claims history.
Check if your new insurer allows mid-year NCB transfers.
Consider a no-claims protection policy to keep your discount safe.
FAQs About Changing Car Insurance
1. Can I switch car insurance after making a claim?
Yes, but your claim may increase your new premium, as insurers consider recent claims when calculating your risk.
2. Can I get a refund if I cancel my car insurance early?
Most insurers provide a pro-rata refund for unused months, minus cancellation fees.
3. Will cancelling my insurance impact my credit score?
No, cancelling car insurance won’t affect your credit score, but failing to pay outstanding fees could result in a negative mark.
4. Can I transfer my car insurance to another car?
Yes, many insurers allow policy transfers if you buy a new vehicle, though there may be a fee.
Final Thoughts: Should You Change Your Car Insurance Midway Through a Policy?
You can change your car insurance at any time in the UK, but you should weigh up the cancellation fees, refunds, and potential savings before making the switch.
If you’ve found a better deal that saves you more than the cancellation cost, switching could be a smart financial move. However, if the fees outweigh the savings, it may be best to wait until renewal time.
Top Tip: Always compare quotes before cancelling to ensure you’re getting a better deal with a new insurer.
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