How to cancel your motorbike insurance policy
When you apply for motorbike insurance, you need to be aware of how much you will be charged if you want to cancel before the renewal date – or you could lose out financially due to a hefty cancellation charge.
You may want to cancel if you decide to sell your motorbike and buy a different vehicle before your renewal date, for example, or if your bike is written off and you don't yet wish to replace it. Compare several quotes before you buy a policy, checking the terms and conditions and cancellation charge.
Selling your bike to replace it with a different model
If you're selling your bike to buy a different model, you may not need to cancel. Most providers will update your policy to cover your new bike instead. You may have to pay a small policy amendment charge, however, and obviously the remaining monthly premiums will reflect the new bike's risk rating.
If your provider's quote for your new bike's cover is very expensive, shop around: it may prove cheaper to cancel your policy and take out a new one with a different provider, even taking into consideration the cancellation charge.
Cancelling your policy because your bike is in storage
If you only use your bike during the summer, and are considering cancelling your policy for the winter period while it is in storage, remember you will be left without protection if your bike is stolen or damaged. If your bike would be expensive to replace, it may not be worth the risk.
Cancelling at the beginning of the policy
If you have second thoughts about your choice of insurance policy within the first 14 days of its term, you can cancel it without paying the cancellation charge, as long as you haven't made any claims. You still have to pay an administration charge, however, and you won't get back the cost of the days you were covered for before you cancelled.
Cancellation after 14 days, but before your renewal date
After the 14-day 'cooling-off' period is over, you will suffer more financially if you decide to cancel your policy. You will be charged a cancellation fee and, depending on the terms and conditions, may be refunded only a limited amount for unused premiums.
Some providers state that if you cancel with only a short time remaining on your policy, you are entitled to no refund at all – so you would be foolish to cancel because not only would you receive no refund, but you would also face a cancellation charge.
Also bear in mind that if you cancel your policy before the end of the year, you will not notch up any no-claims bonus for that year.
If you still decide you want to cancel, you'll need to contact your provider and return your Certificate of Motor Insurance to them. They will ask you to sign and return a declaration stating that you instructed the cancellation, and once they receive this they will go ahead with the cancellation.
Cancelling at renewal time
If you don't want to renew your current cover when renewal time comes around, contact your insurer to tell them. Most providers automatically renew, usually for another year, sometimes with higher premiums. If you've found better or cheaper insurance elsewhere, inform your existing provider that you do not wish to renew, and cancel your direct debit. You will not have to pay any charge for cancelling at this point – as long as you do it before the new policy period has started.