Get exclusive money-saving offers and guides
Straight to your inbox
By signing up, you agree to the Finder
Privacy & Cookies Policy
and
Terms of Use, Disclaimer & Privacy Policy.
How to cancel your car insurance
Don't get stung. Find out how to do it the right way.
Types
Guides
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Have things been on the rocks for a while? Is it time to break up with your car insurer? Here’s what you need to know before doing so.
You can cancel your policy at any time.
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.
| Brand | Cancellation fee | Contact Number | More info |
|---|---|---|---|
| 1300 Car Insurance | If you cancel the policy, a pro rata proportion of the premium may be deducted. If a claim was made under this policy, no return of premium will be made for any unused portion of the premium. | 1300 467 872 | More info |
| 1st for Women | Cancellation fee of $40 | 1300 362 721 | More info |
| AAMI | Cancellation fee of $30 for each car insured on the policy, plus FSL, GST and stamp duty if applicable. | 13 22 44 | More info |
| Allianz | If you cancel the policy, you may receive a refund of the unused premiums, minus reasonable administration costs. | 13 1000 | More info |
| Australia Post | Cancellation fee of $40 | 1300 858 747 | More info |
| Budget Direct | Cancellation fee of $40 | 300 306 560 | More info |
| CGU | No cancellation fee. If you cancel your policy before it ends, CGU will refund a portion of the unused premiums. | 13 24 81 | More info |
| GIO | Cancellation fee of $30, plus FSL plus GST plus stamp duty for each car insured on the policy. | 13 10 10 | More info |
| NRMA | Cancellation fee of $30, plus GST and any other government charges that apply. | 132 132 | More info |
| Ozicare | Cancellation fee of $40 | 1300 360 066 | More info |
| QBE | If 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. | 133 723 | More 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 |
| Real | The cancellation fee is specified in your Certificate of Insurance. | 13 19 48 | More info |
| Virgin | Cancellation fee of $40 | 1800 724 678 | More info |
| Woolworths | Cancellation fee is specified in the Certificate of Insurance | 1300 10 1234 | More info |
| Youi | Cancellation fee of $33, inclusive of GST. | 13 YOUI (9684) | More info |
| Huddle | Cancellation fee is specified in the Certificate of Insurance | 1300 777 200 | More info |
Fed up with your current insurer? Rather than cancelling, it could just be time to switch
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.
Picture: Shutterstock
Get the latest car insurance news
Car Insurance
Where’s Australia’s priciest fuel?
Even in cheaper cities, you could be wasting over $300 a year.
Read more…
Australian drivers spent $78 million on roadside call-out fees over 2 years
Drivers without roadside assistance cover are spending millions of dollars on call-out fees, according to new research by Finder.
Read more…
Violation nation: Aussies spending $600 million per year on parking fines
Australian drivers are shelling out big bucks on parking fines each year according to new research by Finder.
Read more…
More guides on Finder
-
Amazon Prime Day 2021: Don’t miss these deals on 21 June
Amazon Prime Day is returning to Australia in the first half of 2021. Here are six online deals you need to know about.
-
How to buy TitanSwap (TITAN) in Australia
This guide will show you step-by-step instructions on how to buy the TitanSwap (TITAN) token as well as a list of exchanges you can trade it on.
-
Canterbury Bulldogs vs St George Illawarra Dragons NRL: Start time and watch free
The one-win Bulldogs return after a bye, hopefully refreshed and ready to meet the Dragons.
-
NSW first home owners tax reform offers 25K grants
First home buyers in NSW could be given up to $25,000 towards their first home purchase – find out if you're eligible.
-
24 PlayStation 5 consoles are up for grabs this long weekend
eBay is giving away 24 PlayStation 5 prize packs this long weekend - here's how to enter.
-
Does anyone actually need Twitter Blue?
Here's everything included in Twitter Blue and how much it costs.
-
How to watch UFC 263 Adesanya vs Vettori 2 live in Australia
Undisputed champion Israel Adesanya is ready for his long-awaited rematch against Marvin Vettori in Arizona.
-
HBO Max Gossip Girl reboot: new trailer drops ahead of Australian broadcast
An updated version of Gossip Girl is coming our way – and it looks too good to miss.
-
Finder Daily Deals: The 5 best online deals in Australia today
Today's best Finder Daily deals include: 50% off 4K TVs, $200 off Dyson vacuum cleaners, win $10,000 with Optus.
-
Paul Gallen vs Justis Huni: Fight time and how to watch live online
Undefeated heavyweight Justis Huni and former NRL star Paul Gallen are ready for battle as Termination Day approaches.
Ask an Expert
