How to Cancel Car Insurance Without Charges in 2024?

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Alexandre Desoutter updated on 27 March 2024

If you find yourself in a position where you need to cancel your car insurance policy, you’re probably wondering where you begin and what steps you need to take. Every company has its cancellation policy, and you want to make sure the whole process runs smoothly.

After all, you don’t want to get caught up on any hidden fees, and you don’t want to keep paying your premiums when you’ve thought you cancelled it properly. Today, we’ll cover everything you need to know to get your car insurance cancelled correctly and how you can avoid any additional charges. 

Cancel car insurance: 5 Key takeaways

  1. Reasons to cancel car insurance: Financial strain, better rates, selling car, dissatisfaction.
  2. How to cancel car insurance: Call, email, or mail with policy info.
  3. Cancellation fees: Vary, might apply mid-term.
  4. Refunds: Get back unused premium.
  5. Legal issues: Driving without insurance is illegal.

Why would you cancel your car insurance policy?

There are many reasons why you might find yourself in the position of cancelling your car insurance policy, so if you match any of the points below, you’ll know this article is for you:

  • You're unable to afford current car insurance premiums.
  • You've found a car insurance deal for a better price.
  • You’re getting rid of the car (selling your car scraping it, etc.).
  • You’ve had a bad experience with your current insurer and want to switch.

Remember that if you're cancelling your car insurance policy, you'll want to have a new one ready to take its place. Periods without car insurance coverage can increase your future rates.

Use our free tool below to quickly compare car insurance quotes from Canada's best providers and get the best deals based on your unique needs and budget.

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How to cancel your car insurance policy?

While each insurance provider will have their cancellation policy terms and conditions, there are some standard points to ensure the cancellation process is completed correctly.

Good to know

Before you start, make sure you have your policy documents with you, or at least your policy number, so the provider can find the exact contract you want to cancel.

There are multiple ways you can choose when learning how to cancel insurance, the most common being:

  • By phone: By far the quickest way to cancel your insurance policy is to do it over the phone. Simply call up your provider on the enquiries or customer support number they offer, follow the menu instructions until you’re through to an advisor, and they’ll be able to talk you through the process. It usually results in instant cancellation, and you’ll receive all the cancellation documents and confirmations to your email address, or via post, depending on which option you declare best for you.
  • By post or by email: If you opt to proceed with the cancellation of the insurance policy via post or email, you’ll need to wait until your request is processed, which can take between 5 and 14 working days.

Watch out!

You’re only allowed to cancel an insurance policy if you’re the policyholder. If you’re a named driver, you won’t be able to cancel the policy, nor can you cancel anyone’s policy for them by calling up. You need to be the policyholder!

In some cases, the provider may ask why you’re choosing to cancel your policy, and it’s okay to be honest here. If you’ve found a better, more affordable provider, they may even try to offer you a better deal which means you could save even more money.

Can you cancel car insurance anytime?

When can you cancel your car insurance policy? Well, it depends. This is a commonly asked question, but it will vary depending on your provider, and how long you’ve had the policy.

  • Cancelling your car insurance at renewal: This is the best time to cancel your car insurance! You won't have to pay administrative fees or whatever.
  • Cancelling car insurance during the term: When cancelling during the term, you may have to pay car insurance fees. It depends on the provider, but it can be low or quite expensive. Check on your policy what it indicates about car insurance fees.

What documents do you need to cancel a car insurance?

Finally, you may need to fill out some documentation, just to confirm your cancellation. This could be signing a cancellation form (online or via post), and you may need to send your certificate of motor insurance to your provider; although this is rare these days since everything is processed digitally.

Expert advice

When cancelling your insurance policy by post, you’ll want to send a letter of car insurance cancellation that covers all the basic details you’ll need to share with your provider, so you don’t waste time and your policy is cancelled quickly.

In your letter of cancellation, you’ll need to include information such as:

  • Your first name and surname
  • The name of your car insurance provider
  • Your insurance provider’s address
  • Your policy number, written out in full
  • Your written signature at the end
  • Your full address and phone number (in case a reply is needed)

By including a letter with all this information, you should find there are no problems with missing information and your policy will be cancelled with ease.

Is there a fee to cancel car insurance?

How much does it cost to cancel car insurance? Regardless of how you cancelled your car insurance policy, you’ll be notified by your provider beforehand on any insurance cancellation fees or admin fees you may need to pay during the process, and whether you’ll receive a refund on any premium values you have outstanding.

Again, whether you’re paying fees or receiving a refund will depend on the terms and conditions of your provider.

Can you cancel your car insurance with an open claim?

Even if you’ve claimed on your policy, you should still be able to cancel your car insurance policy at any time. It depends on the provider.

However, depending on the terms and conditions of your insurance provider, you may be asked to pay the full price of the policy. Always check the terms and conditions of your policy by reading your documentation, or call up and ask a customer service representative.

Good to know

If you do need to pay your premium in full after making a claim, this will mean you won’t be entitled to a refund on your policy, and even if you’re paying your car insurance monthly, you may be required to pay the full year’s worth of premium during cancellation.

Can your car insurance company cancel your policy?

It is indeed possible that your car insurance company will cancel your contract. Here are a few instances where it might happen:

  1. You've filed too many claims with your car insurance company (usually three).
  2. You haven't been consistently paying your car insurance premiums.
  3. Your car insurance company is entitled to cancel your contract at its one-year mark, without having to provide any reason for it.

If you ever find yourself in this situation, you'll need to get new car insurance quickly to legally drive your vehicle. Compare car insurance quotes using our tool below for free and get the best deals now.

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Can you cancel your car insurance and get a refund?

Usually, you will get a pro-rated cancellation. It means that If you paid a lump sum for an annual policy, this should be refunded, minus any days you’ve already been insured for.

Are there alternatives to cancelling your car insurance?

It isn't bad to cancel your car insurance policy, as long as you get another one that fits your needs better. But, if the main reason you’re cancelling your car insurance policy is due to your current policy premiums being too high, you may want to take steps to reduce your premium costs before you take the plunge and cancel your policy outright. Here are some tips you can follow:

  • Find a cheaper car insurance policy and switch to a new provider.
  • Tell your car insurance company you found a better deal and see if they’ll match it.
  • Change your renewal date so you get more time to get money to pay your premiums.
  • Turn off auto-renew policies so you have time to research the best price for you.
  • Downgrade your car to a smaller, less expensive vehicle.
  • Work on improving your driving record.
  • Maybe you can also drop some coverage that you no longer need. If you have an old car for example, maybe you don't need to have collision coverage. Or if you don't drive that much, maybe you should consider taking just the minimum for third-party liability coverage. In terms of Car Insurance in Quebec, the mandatory amount for third-party liability is $50,000 and for the other provinces, it is $200,000.
  • Change the legal car ownership and become a named driver.

FAQs on how to cancel car insurance

What happens if I cancel my car insurance?

If you cancel your car insurance in Canada, you risk driving uninsured and facing legal penalties, and financial liabilities in case of accidents. Additionally, it may impact your ability to secure affordable coverage in the future, and you might incur cancellation fees depending on your policy and insurer.

Driving without insurance is illegal in Canada, so if you continue to drive without coverage, you could face fines, license suspension, or even vehicle impoundment if caught by authorities.

How to cancel car insurance in BC?

To cancel car insurance in British Columbia (BC), you need to contact your broker or company. They will guide you through the process and provide the necessary forms for cancellation. You'll be required to submit a written notice of cancellation, specifying the date you want the cancellation to take effect.

Additionally, you'll need to return your license plates and any insurance documents to your Autoplan broker as per the regulations set by the Insurance Corporation of British Columbia (ICBC). Once the cancellation is processed, make sure to confirm with your Autoplan broker to ensure that your car insurance policy has been successfully cancelled.

How to cancel TD car insurance?

To cancel your TD Car Insurance policy:

  1. Submit a request through MyInsurance by selecting 'Contact Us' or 'Send a secure message' and choosing 'Cancellation' from the dropdown menu.
  2. Call TD Insurance at 1-877-777-7136.
  3. Fill out the cancellation form found in your policy documents or MyInsurance's 'Document Centre' and mail it to the listed office address.
  4. Consider alternative coverages and deductible options, accessible through the TD Insurance mobile app, MyInsurance, or by contacting an advisor at 1-877-777-7136.

How to cancel Belair car insurance?

To cancel your Belair car insurance, simply give them a call at 1 833 938 3475. Belair will handle the termination process by informing you of any remaining balance and confirming the end date. It's important to note that cancellation requests made by the insured cannot be processed more than 30 days in advance.

How to cancel Aviva car insurance?

Regrettably, online cancellation of your Aviva car insurance policy isn't available. To initiate the cancellation process, you must reach out to an agent at 1-855-788-9090. They'll assist you further and address any inquiries regarding your cancellation.

How to cancel Desjardins car insurance?

To cancel your Desjardins car insurance:

  1. Contact Desjardins: You can call 1-888-277-8726 to speak with a representative or send a letter specifying the cancellation details.
  2. Specify cancellation details: Indicate the desired cancellation date, reason for cancellation, and your mailing address for confirmation.
  3. Confirm in writing: Desjardins will confirm your policy cancellation in writing via mail. There is a slip included with your car insurance policy. You can also alternatively send a letter.
  4. Cancellation fees: If cancelling before the renewal date, there may be associated fees, which can be obtained by contacting Desjardins. No penalties apply for cancellations effective on the renewal date.

When to cancel insurance after selling a car?

After selling a car in Canada, it's essential to cancel your insurance policy promptly. Ideally, you should cancel the insurance on the day of the sale or as soon as the transaction is complete. This ensures that you are not liable for any damages or incidents involving the vehicle once ownership has been transferred to the new owner. Remember to notify your insurance provider and provide any necessary documentation to confirm the sale and cancellation of coverage.


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Alexandre Desoutter

Alexandre Desoutter has been working as editor-in-chief and head of press relations at HelloSafe since June 2020. A graduate of Sciences Po Grenoble, he worked as a journalist for several years in French media, and continues to collaborate as a as a contributor to several publications.

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