Is a £40 car insurance cancellation fee reasonable?

I recently cancelled my car insurance as illness has forced me to stop driving and was told there was a £40 admin fee. I asked if I could complain and was told I can do but they will not do anything. Do you think this is reasonable?

Asked on 7 March 2025 by Steve Cole

Answered by Rhydian Jones
Most insurance policies will carry admin fees for any changes made midway through the policy term. This applies to a variety of changes, such as change of address, name or details of the policy and is in place to cover the cost to make these changes. Usually, cancellations are free within the first two weeks of your policy, but outside of this then charges would usually apply. These should be outlined in the terms and conditions of your policy.
Tags: insurance
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