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Insurance ABCs

How to switch car insurance provider?

Changing car insurance provider can seem like a hassle, which is why we've gathered a few details you might want to keep in mind for a smooth transition.

Don't forget about your No Claims Bonus

If you already have an insurance in the UK, but would like to switch insurance provider for whatever reason, it's always good to keep your No Claims Bonus in mind. The No Claims Bonus, or No Claims Discount system is used in Great Britain to reward good drivers. For each year you drive without making a claim, you earn one year NCB. Insurers usually give substantial discounts based on your No Claims Bonus.

This is where it gets tricky, as you would only get the additional year NCB at the end of a whole year. Hence, when you consider your alternatives, it might be worth checking when your claim-free year is due to finish, in order to get the best price on your next insurance.

If you come from outside the UK, you might want to consider an insurer who recognises foreign licences, and takes into account proofs of claim-free driving from all over the world! Get a quote at Marshmallow, it only takes 2 minutes.


Cancel your policy

Once you've considered all your options, and feel ready to switch insurance provider, you'll need to organise the transition, to ensure your car will stay on cover.

  • First step should be to check your cancellation requirements, as many insurers will ask you to pay cancellation or administration fees. It's also important to understand how refunds are calculated, as some companies will require you to pay for the month you started, while others would refund you a day-to-day basis.
  • Then, it is essential to make sure the provider you choose will be able to insure you. In fact, all insurers have rules they need to follow, depending on the amount of risk they're willing to take in covering someone. As a result, some people might not be able to get a quote with them.


If you'd like to understand how insurance premiums are calculated, head on to our article about What makes a car insurance expensive.

  • Cancelling your policy within the first 14 days of cover: In the UK, the government has created a "cooling-off period" for all insurance contracts to give everyone time to change their mind if they feel they made the wrong decision. Hence, you'll be allowed to cancel for whatever reason. Most insurers would refund you everything you've paid except for the cover you've had so far. Some also charge administration fees.
  • Cancelling your policy outside of the "cooling-off period": After the initial 14-day period, it usually gets a bit more costly to cancel your policy, but it is not impossible. Surprisingly, many insurers would allow you to cancel your car insurance by paying a fee, often around £50. That means your cover would stop as soon as you pay the cancellation fee, and all the premium owed for your time on cover. Insurers having different payment systems, refunds can take from a few days to two months to reach your account.



Looking for an insurer that understands its customers?

At Marshmallow, we want to make insurance as accessible as possible, especially for foreigners living in the UK. This is why we have cut our fees to the minimum. We don't charge any administration fees. Ever. And whatever the reason of your cancellation, we would always refund you on a pro-rata basis, and you would only pay for your days on cover. We would only add a small cancellation fee if you cancel outside of the cooling-off period, only to compensate for the costs we incur. Click here to get a car insurance quote from us!


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