When you cancel an insurance policy, there are a few things you need to know about how refunds work.
Any refund is for the days remaining of your policy
When we give you the refund, it will be for days you didn't use of your policy (which is a year long). This is because you've already had the value of the days you were insured.
This is called a 'pro rata' refund.
You won't be due a refund if you made a claim that is at fault or currently open
If you paid upfront for your insurance
If you paid upfront for your insurance and made a claim during the year, if the claim is not yet settled or settled as a fault claim, you won't be due a refund for the unused days of your policy. This is standard in the insurance industry. If you have been told the claim is not fault, you'll need to wait until our claims team have settled that before we can look at any refund.
If your claim is settled as non fault, then we can calculate your refund from your cancellation date and reinstate any No Claims Discount if that’s due to you.
If you paid monthly
If you paid monthly for your insurance and made a claim during the year, you will owe the remaining premium. Again, this is standard in the insurance industry.
If your claim is settled as non fault, then we can calculate your refund from your cancellation date and reinstate any No Claims Discount if that’s due to you.
Example:
You paid monthly for six months of the policy, then made a claim and had to cancel the policy due to not wanting to replace the car. The cost of the remaining six months of the policy is then due.