You must be sure to follow correct procedure for cancellation (see below).The insurer or broker must refund any monies paid by you within 30 days, although they have the right to deduct a reasonable admin charge, and a sum proportionate to the number of days cover you have had.Contracts are, by definition, legally binding, therefore it’s difficult to cancel without financial penalty unless you can prove breach of contract.
But unless the goods are faulty, this is not an automatic right, and you must refer to the individual shop or supplier’s returns policy.
Under certain circumstances, you are given the right to cancel over a specific period of time.
This includes renewals for insurance where the agreement has been sent by post.
This 14 day cooling off period also covers situations where you bought a financial product from an intermediary or a broker, even if it was discussed and signed face to face.
If you sign abroad you will be subject to local laws, although most European member states have a cooling off period of 10 days.
Check before you sign, although the company must provide you with the same notification of your rights as doorstep sellers.
If you have any related credit agreements, these will also be cancelled.
These are effectively insurance policies and have a 45 day cancellation period with the right to a full refund if you have not made a claim in this time.
Any cancellation after this time will entitle you to a pro-rata refund.