Cancel your old insurance
You have the right to cancel your insurance at any time. However, most insurance companies don’t advertise this fact, and sometimes they make it a bit difficult to leave them. We believe insurance companies should allow you to cancel and receive a refund as fast as they insure you, which is why our customers can cancel with the click of a button.
Key things you’ll learn in this article
- Don’t cancel your existing insurance until your new policy is confirmed and ready to begin.
- Your new policy should start on the same day your old policy ends to help avoid a gap in cover.
- Most insurance providers will refund the unused portion of your premium if you cancel mid-term, subject to their terms and conditions.
- Keep a copy of your cancellation confirmation for your records.
- If you’re unsure when to cancel your old policy, ask your new insurance provider before making any changes.
Will I get my money back?
Your insurance company must refund you the unused part of your premium (unless they have some hidden clause about keeping a certain percentage of your premium). So, if you cancel your annual house insurance policy halfway through the year, you should be refunded half the premium you paid.
You have paid a certain period of insurance, so if you don’t use all of that period (because you want to change insurers, you don’t want cover any more or you have sold your house for example) then you are entitled to receive back the cover you have not used
Will there be a cancellation fee?
It depends on the company. There may be a small fee for processing the cancellation, it should never be more than $30.
Initio does not charge cancellation fees. With initio, you can come and go as you please, and you get a full pro-rata refund of your insurance costs back if cancel a policy.
What do I need to do to cancel?
All you need to do is contact your insurance company and tell them to cancel your policy. Here are the steps:
STEP 1: First make sure your new insurance policy is in place (e.g. with initio). The initio platform allows you to place cover instantly on a day of your choosing up to a month in advance.
STEP 2: Call or email your insurance company telling them to cancel your policy from the date your new initio policy begins. We recommend providing:
- Full Name
- Policy Number(s)
- Address
- Cancellation Date (same date as start date of your new initio policy)
- Bank Account Number (for refund to be paid to)
STEP 3: Check your bank account to confirm the refund has been paid.
Switching insurers checklist
| Before you cancel | ✓ |
|---|---|
| Arrange your new insurance | ✓ |
| Confirm the commencement date | ✓ |
| Check your new policy documents | ✓ |
| Cancel your old policy | ✓ |
| Keep your cancellation confirmation | ✓ |
Having trouble contacting your insurer?
Get in touch with our support team who will be happy to help guide you through the cancellation process with your existing insurer.
Once you’ve completed the steps above and are ready to start your journey with initio, simply get a quote online, set your start date, and you’ll be covered in minutes. It’s fast, easy, and built for people who want insurance sorted without the faff.
Frequently asked questions:
When should I cancel my old insurance policy?
Wait until your new insurance policy has been confirmed and is ready to begin. This helps ensure you don’t accidentally leave your property uninsured.
Will I get a refund if I cancel my insurance early?
Many insurance providers will refund the unused portion of your premium when you cancel mid-term, although cancellation fees or minimum premiums may apply. Check with your current insurance provider for their cancellation terms.
Related Articles:
- Make changes to your house and contents insurance
- How to renew your annual policy
- Navigating your dashboard
- Can I pre-purchase a new policy?
Written by Megan Fisher, Head of Marketing at initio.
Megan has been with initio since 2022 and has over 20 years’ experience in marketing and product strategy. She works closely with initio’s claims and customer experience teams, giving her a first-hand view of how insurance works when customers need it most.