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.
Why is there a cancellation fee?
We charge this fee to cover the costs of ending a 12-month insurance policy early. These operational costs include:
Notifying the Motor Insurance Bureau (MIB) that your cover has ended.
Informing any add-on providers (such as breakdown or legal cover) to close your account with them.
Administrative tasks involved in processing and confirming the cancellation.
Cancellation fees explained
If you cancel within 14 days of buying:
£30 administration fee
If you cancel after 14 days:
The cancellation fee ranges from £60 to £125, depending on:
When you purchased your policy
The policy plan you selected
To find the exact fee that applies to your policy:
Open the Marshmallow app.
Go to the Documents section.
Select your Policy Wording document.
If Marshmallow needs to cancel your policy (e.g. due to unpaid documents or non-payment), a cancellation fee of up to £130 may apply.
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.