Can you refund your Cycle Insurance policy if you cancel your policy?
We understand that our customers can change their minds about buying bicycle insurance, especially if your policy is a significant additional expense. You may wonder whether you can receive a refund for your ALA policy.
This article discusses the reasons to cancel your policy mid-way through the term. We also discuss how to avoid losing your policy premium, should you want to cancel after the cooling-off period.
If you change your mind about your bike cover, you can cancel it for any reason. We may ask for feedback but you don’t need to give an explanation if you don’t want to. Whether you no longer need bike coverage or the insurance doesn’t fit into your budget, you can cancel.
Can you cancel mid-policy?
You can receive a full refund if you cancel within the cooling-off period (14 days after starting your policy) as long as no claims have been made or are pending. You can cancel your cycle insurance policy for any reason after the cooling-off period. However, you will no longer be eligible for any refund of premium.
If you pay in monthly instalments
If you pay for your policy monthly and you wish to cancel, your cover will end on the date your last payment was taken. Whist there is no refund of premium available, there is no cancellation fee. As long as you are up to date with your monthly payments there will be nothing else to pay.
If you pay your annual premium in full
If you want to cancel after the cooling-off period and have paid in full, you are not entitled to any premium refund. You may end your cover if it is no longer needed or relevant.
Should you cancel your policy if you get a new bike?
You may not want to keep your original cycle cover if you have sold the insured bike or get a new bike. If you have passed on your bike to a direct family member, you may wish to transfer your policy. If you want to transfer your bike policy to a member of your immediate family, contact our friendly team, and we can make the transfer at no additional cost. However, we cannot do this for bikes sold to a non-relative.
Cancelling your policy if you get a new bike
If you get a new bike the original policy can be amended and cover can continue on your new bike, as long as it is eligible under the original policy terms. There may be a difference in premium to pay if the new bike is more expensive.
Transferring your policy to a family member
You don’t always have to cancel your policy if you’re circumstances change before your renewal date. You can contact ALA to switch your policy into your family member’s name.
Alternatively, you can transfer your policy over to your new bike if it’s still eligible under the original policy terms. This option is usually preferable over cancelling and taking out a new policy because you don’t risk losing any premium.
Can you cancel your policy after using it?
If you have made a successful bike insurance claim or you are in the process of making a claim, you cannot receive a policy refund, even if you cancel within the cooling-off period. If you have made a successful claim and paid in full, you will want to wait until your renewal date to end your coverage.
How to cancel and get a refund for your Cycle Insurance policy?
If you want a refund for your bike insurance policy, you must contact your insurance company by emailing email@example.com or by phoning 01653 916642 within 14 days of receiving your policy schedule. During this cooling-off period, you can cancel for any reason and receive a full refund of any paid premium, without a cancellation charge, as long as no claims have been made or are pending. We understand that customers can change their minds, so we give you two weeks to decide.
However, if you use your coverage or start a claim during the 14-day withdrawal period, you cannot claim a refund for your bike insurance policy. If your claim is unsuccessful, you may cancel your cover but no refund is available after the cooling-off period.
You may want to pay monthly for your insurance policy because you can cancel at any time and have nothing else to pay; however, monthly instalments cost more overall. You can avoid paying a significant amount for unused insurance coverage if you pay monthly.
Alternatively, if you get a new bike of the same value or if you pass on your bike to a family member, you should opt for policy transfer rather than cancellation. This way, your unused premium is transferred, on a pro rata basis, over to the new owner/bike. By moving your policy for no administration fee, you avoid financial losses for unused premium.