Overview
The cancellation fee is what your insurance company charges if you end your policy before your expiry date. Most insurance companies charge between 2% and 15% of your yearly price. There's no fee if your policy ends on your expiry date.
This applies if you're thinking about cancelling your policy, or switching insurance companies before your expiry date.
How much is it?
- Most insurance companies charge between 2% and 15% of your yearly price, also called your premium
- The earlier you cancel in your policy year, the higher the percentage
- The fee is usually no more than two months of payments
- For example, if your yearly price is $800, cancelling could cost between $16 and $120
How to avoid the fee
- End your policy on your expiry date. See our How to stop your policy from renewing article
- Keep your policy if you're moving or changing cars. See our How to cancel your policy article for your options
Additional info
- The cancellation fee is also called an early termination fee
- Your exact cancellation terms are in the terms and conditions of your policy documents. To find them, Sign in to your YouSet account and select Documents under your policy
Frequently asked questions
Is there a fee if I switch insurance companies before my expiry date?
Yes. Switching before your expiry date means cancelling your policy early, so the cancellation fee applies. To avoid it, have your new policy start on your expiry date.
Is there a fee if I cancel on my expiry date?
No. If your policy ends on your expiry date, there's no cancellation fee.
When is the fee taken from my account?
After your cancellation is processed, your insurance company sends a final bill. The fee is taken from your bank account, along with any amount you still owe for the days you were insured.