Car Insurance

Cancelling your policy

Whether you’ve decided to sell your car, change your car or you’ve simply changed your mind and 
don’t want us to insure you anymore, there are a few key things that you need to know.We want to make the cancellation process as simple as possible for our customers so we have outlined what you need to know about cancelling your car insurance policy below.

Can I cancel my car insurance policy?

A car insurance policy can be cancelled at any time during the lifetime of the policy and before the expiry date. Remember that cancelling a Direct Debit instruction with the bank doesn’t mean that the car insurance policy has also been cancelled. The insured party will also need to contact their insurance provider to advise them of their intention to cancel.

In order to cancel your car insurance policy with Budget Insurance, you will need to contact our Customer Service Team on 0344 412 2118. We are open Monday to Friday 8am-8pm; Saturday 8am-6pm; Sunday 10am-4pm.

How do I cancel my car insurance policy?

To cancel a car insurance policy the insured party is required to contact their insurance provider directly to advise them of the reason why they are cancelling their car insurance policy and the date that they want the cancellation to be effective from. 

Dependent upon your payment method and whether you are cancelling your car insurance policy within the 14 days cooling off period or after this, you may be entitled to a refund. The refund amount and process will depend upon the insurance company’s refund policy.

To cancel your Budget Car Insurance policy, please contact our Customer Service Team in the first instance to advise us when you want your cancellation to be effective from. Our Customer Service Team are available on 0344 412 2118 and are open Monday to Friday 8am-8pm; Saturday 8am-6pm; Sunday 10am-4pm. call us.

How will I know that my car insurance policy has been successfully cancelled?

Whether the request was for the car insurance policy to be cancelled immediately or whether a specific date and time was requested, the insurance provider should send a letter and a text to confirm that the car insurance policy has been cancelled.

You should receive your cancellation confirmation letter from your insurance provider within 14 days of cancelling your policy.

Budget Insurance will send your cancellation confirmation letter to the address that you provided us with when you set up your insurance policy, if you have changed your address since setting up your insurance with us and have not previously notified us of this, you will need to contact our Customer Service Team on 0344 412 2118. We are open Monday to Friday 8am-8pm; Saturday 8am-6pm; Sunday 10am-4pm.

Am I entitled to a refund if I cancel my car insurance policy?

The refund that you are entitled too will be calculated by your insurance provider. You will need to contact them directly to discuss any cancellation fees, charges for time on cover and refund amounts.

For Budget insurance, please be advised that you may be entitled to a refund providing no claims have been made on the policy. Refunds are paid back into the account that your insurance premiums were paid from unless the account holder is deceased. You can find full refund policy in your policy documentation, or you can contact our Customer Service Team on 0344 412 2118. We are open Monday to Friday 8am-8pm; Saturday 8am-6pm; Sunday 10am-4pm.

What is Budget Insurance’s car insurance cancellation fee?

If you cancel your car insurance policy within the 14 day cooling off period, you will be charged a cancellation fee of £38.00 and you will be required to pay for the time that your car has been covered for.

If you cancel your car insurance policy after 14 days you will be charged a cancellation fee of £60.00, you will also be charged for the time that you’ve had insurance cover for. If you cancel your car insurance policy following a claim, or any incident that results in a claim, you will still have to pay the full premium.

What are the consequences of cancelling my car insurance policy early?

There are a number of potential consequences to cancelling your car insurance policy early so it’s worth ensuring that you have clearly read your policy terms and conditions before you cancel.

You may, for example, miss out on the no-claims-discount for that period. It is also worth noting that when you cancel your car insurance policy, this may also mean that any additional products that you have added on to your policy, such as Motor Legal Protection, Personal Accident Cover, Guaranteed Replacement Car, Breakdown Assistance, Keycare and No Claims Discount Protection will also be cancelled at the same time. Please check with your insurance provider for more information on the consequences of cancelling your car insurance policy.

Please be advised that Budget Insurance will only refund premiums for additional products if you cancel your car insurance policy within 14 days of receiving your policy documents. You will need to contact our Customer Service Team directly to discuss any additional products that you may have added on to your car insurance policy at the time of purchase to see if these will cancel with your policy or continue to run. You can contact our Customer Service Team on 0344 412 2118. We are open Monday to Friday 8am-8pm; Saturday 8am-6pm; Sunday 10am-4pm.

How do I cancel my car insurance Policy before it automatically renews?

Many annual car insurance policies are set to auto-renew at the end of the 12 month insurance period. This is to ensure that drivers don’t forget to renew their policies and are not left un-insured and therefore driving illegally.

It is the obligation of the consumer to be aware of their renewal date and either seek alternative insurance cover or renew their insurance policy.

For Budget Insurance, you can stop your car insurance policy from auto-renewing by calling our Customer Service Team on 0344 412 2118 and advising us of your wish to cancel once your annual period is up. You won’t incur any fees for this providing you advise us before your new policy comes into effect.

One final note:

Don’t forget that it’s an offence to drive a car without insurance, therefore, if you intend on driving your car past the date that you cancelled your car insurance, you must ensure that you have alternative cover in place.

Need a Budget Car Insurance Quote ?

Budget Insurance offers simple, flexible car insurance whatever level of cover you’re looking for.

We’re currently experiencing a high volume of calls into our contact centre and whilst we are doing our very best to maintain service levels, we ask that you only call our contact centre if absolutely necessary so we can keep our phone lines available  for vulnerable customers and those who don’t have access to online services.

If you need to check any details or make a change to your policy, please  log in to your Self-Service Centre. It will be much quicker for you to make changes to your policy online at the moment. Once logged in, you can also use our Webchat service which is available Monday- Saturday 8am-6pm and Sunday 10am-4pm to make changes, accept or decline your renewal or if you need to let us know about a claim. To log in, please click here.

We also have some other information that may be useful. Click here to read our FAQ’s, and information on what we are doing to support key workers can be found here.