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How To Cancel A Car Insurance Policy After the Purchase?

Published On Mar 17, 2021, Updated On Mar 25, 2021

Purchasing car insurance is mandatory in India if you want to drive your car legally on public roads. But have you wondered, what if you want to cancel the policy? Yes, it is possible to cancel your car insurance policy and get a refund. However, you need to fulfil certain requirements to do so.

Just as purchasing a car insurance policy should be an informed decision, cancelling a car insurance policy also needs well-thought-out action. You need to think of the consequences of cancelling your policy and chalk out your next steps. 

How To Cancel A Car Insurance Policy After the Purchase?

How To Cancel A Car Insurance Policy After the Purchase?

Read ahead to know about how to cancel your car insurance policy the right way and get a refund: 

There is no common procedure for cancelling a car insurance policy and different insurance companies can have different procedures. Although the fundamentals remain the same, some insurers might have one or two additional measures. Here's a step-by-step guide to help you understand the measures involved in cancelling your car insurance policy.

1. Contact the Insurance Company

Let the insurance company know you've decided to cancel your car insurance policy. We can do this over the phone or by emailing. They'll walk you through the details of the cancellation process.

2. Documentation

The insurance company can request certain documentation based on the reason for cancellation.

3. Cancellation

After sending the proper papers, the insurance company will check them, and if they accept your cancellation request, you will receive a policy that says "cancelled." You can also get a certificate for the No Claim Bonus.

Online Process

Besides the three-step offline process described above, some insurers may also have an online cancellation or self-cancellation option. To revoke your policy, you must first log in to their website and follow the steps outlined there.

Refund Process For A Cancelled Car Insurance Policy

Based on when you cancel the policy and the terms and conditions of the policy, they may entitle you for a refund. Look at the two scenarios below.

1. Cancellation Before the Policy Begins

In this situation, you are likely to get a nearly complete refund of your bill, with some transaction fees deducted.

2. Cancellation After the Policy Began

They will issue the refund on a pro rata basis in this situation. This is because your auto insurance policy has only protected you for a few days.

3. Timeline For Refunds

The time it takes for your refund to be processed is dictated by your payment method. However, the refund should arrive in only 14 working days.


If you have questions about your car insurance policy's cancellation and refund process, contact your insurer and have all of your questions answered. Make sure you're not making a hasty decision.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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