How to cancel a bike insurance policy
Whatever the reason, here's everything you need to know about canceling coverage.
There may be several reasons why you want or need to cancel your motorcycle insurance policy.
You may have decided to sell your bike and buy a car, or use an alternative mode of transportation before it is time to renew your current policy. Or, your flight may have been stolen or written off, and you are not yet ready to purchase a replacement.
Whatever the reason, how you proceed to cancel your insurance coverage, and whether or not you lose money, as a result, depends largely on when you plan to do so and on the terms and conditions of your insurance company.
I don't want to renew my policy, but I cannot access my insurance company. What should I do?
During the COVID-19 pandemic, you may find that you cannot contact your insurance company on the phone due to the long wait times.
If this happens, you can send an email to the insurance company, to confirm that you do not want to renew the policy. This should be sufficient to cancel the policy before the renewal date. Keep in mind that only the policyholder can cancel the insurance policies.
You can find the email address of your insurance company on their website. In your email, it helps to include:
- Your policy number and the date of renewal
- The policy holder's name, date of birth, and zip code
- Reg your bike
It may also be helpful if you add a reason for the cancellation, and remember that you were not able to communicate by phone.
Make sure you have valid insurance to cover you after the renewal date.
Is abolishing the motorcycle policy a good idea?
Most insurance companies will allow you to update your policy to cover the new model, although your premiums for the remaining few months may change the policy to reflect the new device's risk rating.
It is very unlikely that your service provider will not want to cover your new bike. You may have to pay a fee to amend a currently valid policy.
This varies from company to company, but details of the fees should be specified in your policy booklet. However, in most cases, the cost of adjusting the policy is less than canceling.
If your insurance company raises its premiums substantially for your new motorcycle, it may be useful to compare quotes from other insurance companies: It is possible that you could save money by canceling your policy and moving to a new provider, even after paying the cancellation fee is taken. in consideration.
If you are considering canceling your policy during the winter months because your bike is in storage, bear in mind that this means that you will have to pay the bill if it is stolen. Is this a risk you are willing to take?
It may be better to change your policy if:
- Want to add a named driver
- You are planning a trip to Europe and want to extend your coverage to the continent for a short period
- You or a named rider have changed your job or the way you use the motorcycle - for example, if you start hitchhiking with it
- You or any other named passenger will be convicted of a driving offense
- Moving home or changing where the bike stays overnight.
- Your motorcycle license has been changed if you have completed a new course
Cancellation is at the beginning of the document
Insurance rules in the UK state that there is a 14-day 'cool-down' period when purchasing most types of coverage.
This means that if you want to end a policy within two weeks of receiving your documents, you must get back more or less of your premiums.
But if you cancel during the cool-down period, you may have to pay an administration fee (usually less than the full cancellation fee) in addition to the cost of many days covered.
So if your policy did not go into effect upon cancellation, you only have to pay the administrative fee. You will not be able to cancel this way if you have made any claims during the cool-down period.
Cancellation after the cool-down period
Once the 14-day cool-down period ends, the financial penalties to cancel will likely be greater. You will be charged a cancellation fee, and the refund amount for unused installments may be limited.
For example, if you cancel only shortly before your insurance period, you may not be entitled to a refund. In such a case, it may not be feasible to cancel the policy at all, as doing so will incur a cancellation fee.
However, if you no longer own the bike for any reason, for example, if you sell it, then the law requires you to cancel your bike insurance.
Don't always expect a proportional full refund even if you cancel too early in the policy term.
Check your insurance policy booklet for fees before going any further.
If you don't want to renew your cover
You may simply want to automatically stop renewing your policy at the end of the year: you may have found cheaper cover elsewhere.
Most providers will now extend your coverage for another year (possibly at a higher rate) unless you explicitly tell them not to do so.
If you do not want to renew, it is not enough to simply cancel the direct debit: you need to tell your insurance company, either by phone or in writing. But you will not incur any fees for this, provided you cancel before the new policy takes effect.
Consequences of cancellation
If you terminate your policy before the year ends, the No Claims Bonus for that period will be forfeited. If you have an anti-breakdown or other protection included in your motorcycle policy, that will expire too - and you may not get any refund for that.
How can I cancel my policy?
If you want to go ahead and cancel, you need to contact your insurance company to let them know and return your auto insurance certificate.
You may also need to sign and return a statement that you want to proceed with the cancellation.
In most cases, the cancellation will take effect only after the insurance company receives the signed declaration. You will then get a letter confirming the policy cancellation.
What to do if you disagree with the charges
As you can see, the potential penalties for early cancellation can be very significant.
If you think it is unfairly high - or if you have to cancel due to what you believe is an error on the part of the insurance company - you can file a complaint with the company directly.
Ask for a customer services address, and write clear details of your condition - such as what happened, when, and why you think your bee has charged you unfairly. Even if fees are specified in the policy booklet, you may be able to challenge them.
Keep a record of whoever you talk to and the messages you send (and use private delivery so you have evidence of receiving them).
If the company does not handle your complaint to your satisfaction, you can file your case at no cost to the Financial Ombudsman Service.
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