Understand how insurance works so that you can make the decision on whether you need it or not.
4 min read
Can my insurer cancel my cover right away?
Usually, your insurer will need to give you 31 days’ notice before cancelling your policy. However, in some circumstances, like if you lied during your claim or when you took out the policy they can cancel your policy immediately or even cancel back to your original start date. In the latter case, they will give you all your premiums back. Best to check your policy wording for the details.
Why would an insurer cancel my cover?
The most common reasons an insurer would cancel your cover are: • Not paying your premiums; • Too many claims, so they see you as too high a risk; • Non-disclosure of a material fact when you took out your cover or when you submitted a claim; • A change to your risk, meaning they can no longer cover you. For example, if you extensively enhance the engine output of your vehicle; or • Performing illegal activities, like driving under the influence of alcohol or submitting false claims.
How do I cancel my insurance?
Different insurers will have different processes. Some require you to cancel in writing, others allow you to do it over the phone. If you are with Naked and would like to cancel, open the app, select your cover, scroll to the bottom, and tap “Cancel my cover”. Your cover will be cancelled immediately and your unused premium will be refunded.
Does it cost anything to cancel my insurance?
Insurers might charge a penalty fee if you cancel your policy – be sure to check your policy wording. If you are covered through Naked, cancelling costs nothing and we refund you the pro-rata amount for any unused premiums.