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If you haven’t made any claims, you may not face direct penalties for canceling your car insurance. However, there are essential points to consider before making the decision.

Understanding the impact

Canceling your car insurance can have an impact on the following: 

  • No-claims bonus (NCB) – Canceling your policy might lead to a loss of any accumulated NCB. This could result in higher premiums when you get new coverage later.
  • Future rates – A gap in coverage caused by cancellation might lead to higher rates in the future, even with a clean claims history.
  • Lapse in coverage – If you cancel without securing new insurance, you risk being uninsured, leaving you financially vulnerable in case of an accident or theft.

Best practices 

  • Policy transfer – If changing insurers or getting a new vehicle, explore transferring your policy to maintain your NCB.
  • Policy suspension – If your car won’t be in use for an extended period, consider suspending your policy to keep your coverage and NCB intact.
  • Plan ahead – Think about your future insurance needs before canceling, and assess if it aligns with your long-term goals.


Canceling car insurance without claims may not result in immediate penalties, but it can affect your NCB and future rates. Explore alternatives like policy transfer or suspension, and plan ahead to make informed decisions about your insurance coverage. Always consult with your insurer to understand specific policies and options available to you.