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How do I switch my car insurance provider?

August 17, 2021
3 min read
Josephine
COps Lead

Let’s be honest, not all car insurance providers are known for their great customer service. So, we can’t blame you if you’re looking for a change. But how should you go about switching your car insurance company? Our tips will help make the process easy. 

✅  When’s the right time to switch insurance?

Forward-thinking really does pay off when it comes to insurance. You can save money on your car insurance premium if you switch your provider 3 weeks before you’re due for renewal rather than on your renewal day. 

If you want to cancel a long time before your renewal is up, don’t panic. You can usually cancel your insurance policy at any time. Just make sure to check your insurance company’s terms and conditions, as you may have to pay cancellation fees.  

If you've only had your insurance policy for 14 days, then you're still in the “cooling-off period”. If you’re ‍cancelling your policy within this timeframe, you’ll be allowed to cancel no matter the reason. And, the insurer is legally required to refund everything you’ve paid so far. They might, however, charge admin fees. At Marshmallow, if you cancel within your 14 day cooling-off period we will not charge you a cancellation fee.

If you’re cancelling your policy outside of the "cooling-off period", it usually gets a little more costly. But it’s not impossible. Lots of insurers will allow you to cancel your car insurance by paying a fee. 

At Marshmallow, we charge a £50 cancellation fee. Your cover will stop as soon as you pay the cancellation fee, and all the premium owed for your time on cover. We refund on a pro-rata basis, so you only pay for the time you’ve been on cover. For example, if you’ve just paid a monthly instalment but then cancel a couple of days later, we will refund for the days you haven't used. Refunds can take anything between 7-10 days to reach your account.

🙅‍♀️ How do I cancel my policy?

Once you've considered all your options and feel ready to switch insurance provider, you'll need to organise the transition to make sure your car keeps being covered. 

Check your cancellation requirements as many insurers will ask you to pay cancellation or administration fees. It's also important to understand how refunds are calculated. If you’re switching at the beginning or in the middle of the month, some companies will require you to pay for the entire month in full. Others might refund you on a day-to-day basis. At Marshmallow, if you cancel within your 14 day cooling-off period we will not charge you a cancellation fee.

Before cancelling your cover, make sure the new provider can actually insure you. All insurers have rules they follow, depending on the amount of risk they're willing to take in covering someone. As a result, some people might not be able to get a quote from them.

🤔  What about my No Claims Discount?

When switching insurance providers, it’s always good to keep your No Claims Discount in mind.

The No Claims Discount (NCD), or No Claims Bonus (NCB) system, is used in the UK to reward good drivers. For each year you drive without making a claim, you earn one year’s NCD or NCB. Insurers usually give substantial discounts based on your NCD or NCB.

The catch is that most insurers will measure your claims based on years. So, if you’re switching before your year’s worth of cover is up, you might affect your NCD or NCB. Before switching, check when your claim-free year is due to finish so that you can get the price on your next insurance.

If you’re new to the UK, you might want to consider an insurer who recognises non-UK licences and takes into account proofs of claim-free driving from all over the world. Get a quote at Marshmallow, it only takes 2 minutes! 

👏 Get cheaper, faster and fairer insurance

If you're thinking about switching insurance, make sure to get a quote from Marshmallow. We want to make insurance as accessible as possible. That’s why we’ve cut our fees to a minimum. Plus, our claims line is open 24/7 and accessing your policy documents is easier than ever with our handy app.

Click here to get a quote from us!

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