Guide
Why Is My UK Car Insurance Refund Lower Than Expected?
A cancellation refund can be lower than the unused fraction of the annual premium. Start with the car insurance cancellation refund calculator, then compare its arithmetic estimate with the insurer’s written breakdown.
Cover already used
The insurer can account for the period during which cover was provided. Cancelling halfway through a policy does not normally mean receiving the full premium back; only the unused period forms the starting point for an estimate.
Cancellation and administration fees
Your policy may state a cancellation or administration fee. Enter the stated amount in the calculator rather than assuming no fee. During a cooling-off period, a charge for time covered and an administration fee may still apply depending on the terms.
Instalments and outstanding balances
Paying monthly does not necessarily mean buying one month of cover at a time. Instalments may finance an annual policy, so the final account can include a balance or adjustment separate from the unused-premium estimate.
Ask for a written breakdown
Request the dates used, the charge for cover already provided, each fee and any instalment adjustment. This article and calculator provide general arithmetic information, not insurance, financial or legal advice. Your policy wording and insurer determine the final refund.
▲ Check your own figure
Plug your numbers into the car insurance cancellation refund calculator — it shows the full working, so you can see exactly which days were counted.