How to cancel your motorbike insurance policy
For many different reasons, riders may need or want to cancel their motorbike insurance policy. We tell you how.
From selling your bike to just falling out of love with riding, there are lots of reasons why riders will need to cancel their motorcycle insurance policy.
Unfortunately, cancelling an insurance policy can come with its own costs so it’s important to be clear in your own mind that you do want to cancel your motorbike insurance policy.
Should I cancel my motorbike insurance policy or just update it?
In some cases, riders don’t actually need to cancel an insurance policy, it just needs to be changed and updated.
For example, if you have bought a new motorbike and sold an old one, you don’t need to cancel your policy, you can just change the details on it.
This may result in charges, representative of your new motorbike, but it may not be quite as expensive as cancelling your policy altogether.
What you need to also be aware of is that most insurers charge a fee for changing details and amending policies too. It’s important that you’re aware of your insurer’s change and amendment charges when weighing up whether to cancel or update your policy.
The cooling off period
In the UK, insurance rules state that policyholders have a 14-day cooling off period during which you can cancel your policy and receive an almost full refund.
You will however have to pay an administration charge and the cost of how long you were covered for.
After the cooling-off period
After the cooling-off period of 14 days, your insurance policy is fully in effect and if you still wish to cancel your policy you will be charged a cancellation fee.
The cost of your cancellation fee depends on your insurer however it will be set out in your insurance policy. You should be refunded a set amount based on the amount you have paid and the unused premium remaining.
If you cancel your motorbike insurance close to your policy’s start date, you should receive a decent refund. However if you’re reaching the end of your contract and you are looking to cancel, you’re unlikely to receive much of a refund.
Whatever the case, expect to lose some money when cancelling your insurance policy because cancellation fees are not cheap.
Bye-bye No Claims Bonus
If you cancel your motorbike insurance policy before the stated end date of your policy, you will not receive your No Claims Bonus for that year.
This is something that needs to be considered when making your decision to cancel, as it will have financial implications on your next motorbike insurance policy, potentially making it more expensive depending on your No Claims history.
Breakdown cover and others
If you have paid for breakdown cover – or any additional extras – on your insurance policy, you may not receive a refund for the unused payments.
How to cancel your motorbike insurance policy
If after weighing up the costs of a cancellation you still want to go ahead and end your contract, you need to get in touch with your insurance provider.
To do this you will need to speak to your insurer and return your Certificate of Motor Insurance.
In most cases you will also need to sign a declaration stating your desire to terminate your contract and the policy will only end once your insurer receives the declaration.
Renewing your motorbike insurance policy
Insurance companies aren’t daft and most of them will automatically renew your insurance policy if you do not inform them expressly that you do not wish to renew your policy with them.
This doesn’t mean just cancelling your direct debit or payment, it means giving them notice in writing or over the phone.
If you think that the fees you have been charged for cancellation are too high and unfair then you can make a complaint to your insurance provider.
Unfortunately, cancellation fees will be set out in your insurance policy’s terms and conditions and, if you’ve signed it, you’ll just have to swallow it.
If however you have cancelled your insurance policy because of an issue with your insurer, you can make a complaint to the insurer.
If they do not deal with your complaint satisfactorily then you can take it to the Financial Ombudsman Service, free of charge.
If you cancel your motorbike insurance but keep your motorbike, you need to either declare it off the road or begin another insurance policy. Under Continuous Insurance Enforcement (CIE) rules there cannot be any period of time when your bike is uninsured or not declared off the road.
Read our guide to find out how to declare your motorbike off the road.