Did you know that you have the right to cancel your insurance at any time? That is right, although most insurance companies don’t make that information easy to find. Some even make it hard if you try to leave them. But the important thing to remember is that you are not bound to any policy. If you wish to cancel, or switch to another policy provider, you can do so. Here at Money Compare, we encourage Kiwis to make a habit of regularly comparing, and even switching their insurance provider if you find a better deal. You can use our user-friendly comparison tool to compare different insurances and policies.
Will I get a Refund?
As a rule, your insurance provider must refund you any unused premium. The only instance they might not have to do so if there is a hidden clause about keeping a certain percentage of your premium.
For example, if you cancel your annual house insurance premium 6 months into the year, the insurance company should refund you the half of the premium that was not used.
When you purchase insurance, you are paying to be insured for a certain amount of time. If you don’t use all that time, you are entitled to receive back the part of the premium that you didn’t use.
There are many reasons you may choose to cancel. Perhaps you have found a better deal and want to change providers, or perhaps you have sold your house.
Is There a Cancellation Fee?
Some companies may charge a cancellation fee. It’s a good idea to check with your provider and policy before cancelling, just so you can make an informed choice. The fee shouldn’t be more than $30. If there is a fee, just remember that by switching to a better deal, you will save more money in the long run.
How Can I Cancel My Policy?
Cancelling your policy should be as simple as contacting your insurance provider and requesting they cancel your policy.
It’s a good idea to make sure you have a new insurance policy set up before you cancel your current one. That way, you still have coverage in case something happens. Many insurance providers allow you to place your policy cover right away on the same day, or to set a date in advance, usually up to a month.
You can then notify your current insurance provider by calling or emailing them. Be sure to tell them to cancel the day your new policy begins. That way, you aren’t paying for more than one policy, and you’re still covered. There are a few details you’ll likely need to provide:
- Full Name
- Policy Number(s)
- Address
- Cancellation Date (same date as start date of your new policy)
- Bank Account Number (for the refund to be paid to).
Lastly, be sure to check your bank account to make sure you have received your refund.
Compare Insurances
Here at Money Compare, we are all about helping Kiwis make better choices with their money. Our user-friendly comparison platform makes it easy to compare different types of insurances, such as house insurance, to find the right fit for your unique needs, and find the best deal. Have a look at Initio’s range of policies, from house insurance, to car insurance.
