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How to cancel your car insurance

You can cancel your car insurance whenever you want – but you'll usually need to pay a small fee.

Cancelling your car insurance isn't hard. All you have to do is contact your insurer and tell them you want to cancel your policy. You'll usually have to serve out the rest of the month and pay a fee of $30-$40. But it's still better than sticking with an insurer that you're not a fan of.

Are there any cancellation fees?

It depends on the insurer. There may be some cancellation fees, however there may also be cancellation refunds for unused portions of your premium.

If you cancel within the cooling-off period (typically within 14 days of taking out a policy) and have not made any claims, you should be able to get a full refund minus various processing fees.

Look below for a list of cancellation fees and refunds that are available with different Australian insurers. Cancellation benefits vary from brand to brand. Always read through the product disclosure statement (PDS) to make sure the product is suitable for you.

BrandCancellation feeContact NumberMore info
1st for WomenCancellation fee of $40.1300 362 721More info
AAMIThere is no cancellation fee but any prorated amount to pay on the policy should be settled.13 22 44More info
AllianzNo cancellation fee.13 1000More info
Australia PostNo cancellation fee.1300 858 747More info
Budget DirectCancellation fee of $40.1300 306 560More info
CGUNo cancellation fee. If you cancel your policy before it ends, CGU will refund a portion of the unused premiums.13 24 81More info
GIOCancellation fee of $30, plus FSL plus GST plus stamp duty for each car insured on the policy.13 10 10More info
NRMACancellation fee of $30, plus GST and any other government charges that apply.132 132More info
OzicareCancellation fee of $40.1300 360 066More info
QBEIf you've paid your premiums in advance, QBE will refund you the proportion of the premiums for the remaining period of insurance, less any administration fees.133 723More info
RACQ

If you cancel your policy, a portion of premium may be retained. A refund of the residual for the unexpired period, less the cancellation fee of $20 plus GST, the agency fee of $50 plus GST and any non-refundable government taxes or charges, provided that: no event has occurred where liability arises under the policy; and the residual amount is over $20.

13 1905

More info
VirginCancellation fee of $40.1800 724 678More info
EverydayNo cancellation fee.1300 10 1234More info
YouiCancellation fee of $22, inclusive of GST.13 YOUI (9684)More info
HuddleNo cancellation fee.1300 777 200More info

Fed up with your current insurer? Rather than cancelling, it could just be time to switch

1 - 7 of 7
Name Product Roadside assistance Accidental damage Storm Choice of repairer Agreed or market value
Budget Direct Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: The 2023 winner of our Best Value Car Insurance award. It's cheaper than most, plus you can lower costs by adding age restrictions.

⭐ Current offer: 15% off your first year's premium when you take out a policy online. T&Cs apply.

Who it might be good for: Anyone who wants a good value policy.
Youi Comprehensive
Optional
Agreed or Market
Finder's summary: The 2023 winner of our Best Features Car Insurance award. Plus, it's one of the only insurers to automatically include roadside assistance.

Who it might be good for: Those who want good customer service with lots of inclusions.
Australia Post Comprehensive
Optional
Agreed or Market
Finder's summary: Covers a little more than other insurers. You don’t need to pay an excess for windscreen repairs and cover applies to anyone who uses your car.

⭐ Current offer: Get $100 off your first year's comprehensive car insurance premium when you buy online. T&Cs apply.

Who it might be good for: Multiple people using one car.
Bingle Comprehensive
Market
Finder's summary: Our data shows it’s the cheapest comprehensive policy. It just covers the basics such as damage to your car, theft and storms – it doesn’t go in for add-ons and extras.

Who it might be good for: Those wanting a low-cost, no-frills policy.
QBE Comprehensive
Green Company
QBE Comprehensive
Optional
Agreed or Market
Finder's summary: Our best-rated Car Insurer for Customer Satisfaction in 2021/2022 and Green Insurer for the last 3 years.

⭐ Current offer: Save $75 when you purchase a new comprehensive policy online. T&Cs apply.

Who it might be good for: Those who want a trustworthy insurer and more cover than other brands, such as 3-year new car replacement (e.g. they'll give you money for a new car for up to 3 years if yours is written off).
Kogan Comprehensive
Optional
Agreed or Market
Finder's summary: Kogan comes with all the perks that most comprehensive car insurance policies include, but you'll also be entitled to some benefits from its online store. This usually comes in the form of a gift voucher or discount if you buy online.

⭐ Current offer: Get $115 off first year premiums when you purchase Kogan Comprehensive Car Insurance online + $10 monthly kogan.com credit. T&Cs apply.

Who it might be good for: Kogan shoppers and those after a good range of policy options.
Qantas Comprehensive
Optional
Optional
Agreed or Market
Finder's summary: You need car insurance so why not get one that lets you earn Qantas Points? It's good value too (it's underwritten by the same insurer as Budget Direct). .

⭐ Current offer: Earn up to 30,000 Qantas Points with every Qantas Car Insurance policy you take out by 7 February. T&Cs apply.

Who it might be good for: People who want more bang for their buck with Qantas Points.
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When will I not be able to cancel my policy?

There are no situations where you cannot cancel your policy. If you want to cancel your cover, an insurer cannot say no.

However, cancelling your policy doesn’t necessarily get you off the hook for any payments you owe to an insurer, and will not necessarily entitle you to any refund.

What are the consequences of cancelling a policy early?

The main downside of cancelling a policy early, other than losing your cover, is that you may not be getting everything you paid for and may need to pay additional cancellation fees.

But there are still valid reasons for doing so. You may consider canceling your cover if:

  • You only want short term car insurance (cover for less than a year).
  • You’re switching car insurance.
  • You’re selling or gifting the car, trading it in, moving overseas or for any reason don’t want to maintain your current car insurance.

Can I transfer car insurance policies to someone else?

Generally no. A new person will need to take out their own policy, so they can get their own pricing based on risk.

The exception is CTP insurance which can typically be transferred along with car registration in most states. For example, if you sell a car then you may be able to transfer over its current CTP insurance as well.

Can I transfer my policy to another car?

Yes. Many insurers will let you transfer your current policy to another car, although this may vary between insurers, and insurers are free to decline to cover your new car at their sole discretion.

If you do transfer your policy to another car you can expect your prices to change accordingly.

Generally insurers want to keep customers, so transferring your policy to another car can be done easily. Simply contact your insurer and ask.

Can I just wait for my policy to lapse?

Yes. Sometimes this may be the better option in order to avoid paying cancellation fees. But if you’re doing this you need to know whether or not your policy will automatically renew.

If it does then you may try asking your insurer to simply not renew it, or can remember to cancel your policy immediately before the renewal date.

Typically the cooling-off period also applies after renewals, as well as after taking out a new policy, so if you were caught by surprise with an automatic renewal you have a couple of weeks to cancel your policy for a full (minus administrative costs) refund.

What are the alternatives to cancelling my coverage?

If you want to switch car insurance, change your type of cover or otherwise discontinue your policy then cancelling is probably the way to go.

However, if you’re looking to reduce the cost of your current cover, or want to make adjustments, then you will not necessarily need to cancel it first. But depending on what you want to change, an insurer may tell you to cancel your current policy and then take out a new one with different terms.

Some of the things you may be able to change without cancelling your policy include:

  • Your cover options and extras
  • Your excess
  • Your sum insured
  • Your covered modifications and accessories

Other times, an insurer may be willing to waive your cancellation fee if you’re changing policies but not insurers. For example, if you want to upgrade from third party car insurance to comprehensive car insurance, an insurer may be happy to cancel your current policy and give you a new one without charging any fees.

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