Skip to main content

Do I have to pay a cancellation fee?

This article is for: Marshmallow policyholders who are thinking about cancelling their car insurance policy.

Updated this week

Yes, most cancellations with Marshmallow incur a fee, but how much you pay depends on when you cancel and why you're cancelling. In some exceptional cases, the fee can be reduced or waived entirely.


Cancellation fees explained

1. Cancelling within the 14-day cooling-off period

If you cancel within the first 14 days after your policy starts (known as the cooling-off period), you'll be charged a £30 administration fee, regardless of your plan.

2. Cancelling after the 14-day cooling-off period

If you cancel after the 14-day period, your cancellation fee will depend on your policy type:

Plan Type

Cancellation Fee

Lightest

£125

Essential

£100

Original

£75

Plus

£60

These fees apply to mid-term cancellations (i.e., cancelling partway through your policy).


When the fee can be reduced or waived

  • Marshmallow recognises that personal circumstances can make fees difficult to pay.

  • If you're cancelling because the policyholder has died.

  • Mistakes on Marshmallow's side may result in the fee being reduced or waived.

Did this answer your question?