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Can I Cancel My Car Insurance Before It Expires?

Can I Cancel My Car Insurance Before It Expires Blog

Why would you want to cancel your car insurance policy? It could be that you aren’t planning on driving the vehicle for a while. Perhaps you are selling it, and the purchaser insists on switching insurance providers. It might be that you need the cash, and you wonder if there is a refund that comes with the cancelation. Read on this guide to learn everything there is to know about canceling your car insurance policy before it expires!

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Is It Possible To Cancel Your Car Insurance Before It Expires?

The answer is yes, and we believe that’s what you wanted to hear. If you do business with legitimate Malaysian insurance providers, it will be possible to cancel your car insurance policy at any moment. That is a convenient option because it allows you to get out of a contract that you don’t want to be in anymore.

What Should You Do To Cancel Car Insurance Before It Expires?

According to the experts, you should contact your insurance company or agent first. It might be smart to visit the agency’s website to see what the cancellation conditions and requirements are. Those could also be specified as a part of your car insurance policy. It usually comes down to this – you file a request for cancellation and send it to the agency. From there, the company processes your requests and breaks the contract. It is critical to emphasize that you will have to return the Certificate of Insurance. That certificate will no longer be valid, and the insurance company will make sure it’s archived properly. Another thing to note is that you will have to sign the cancellation agreement yourself. You cannot send another party to cancel the policy for you. Since you are the policyholder, you are the only one who can ask to nullify the deal.

Can You Expect A Refund If You Cancel Motor Insurance Before It Expires?

Here is the good news – you can look forward to a refund if you cancel the insurance policy earlier! However, there are a couple of exceptions here. First, the insurance companies only pay a partial refund, and it depends on when you decided to cancel the policy. Another thing to note is that you shouldn’t expect a refund if the deal has been active for at least eight months. Here is a table on the refund the expect:

Insurance Time

Refund %

Less than eight months


Less than six months


Less than four months


Less than three months


Less than two months


Less than a month


Less than a week


As you can see, the sum that you receive decreases over time. If you are planning on canceling your policy, you should do it as soon as possible. That will ensure you receive the biggest part of your premium as a refund for the cancellation.

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Can You Renew Your Car Insurance Policy Early?

What if you don’t want to cancel but extend your motor insurance policy before it expires? The good news is that you can do it, too. It’s in your interest not to let a day pass without having valid car insurance. That is why many companies allow you to start renewing the deal as early as two months before it expires.

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