Cooling-off Rights

Cooling-off rights are consumer protections allowing policyholders to cancel insurance contracts within a specified period after purchase and receive a full refund of premiums paid, provided no claims have been made. For most general insurance products (home, motor, contents), the cooling-off period is 14 days from when coverage begins or you receive your policy documents, whichever is later. For life insurance, the cooling-off period is typically 30 days. These rights apply regardless of how the insurance was purchased - online, through a broker, over the phone, or in person. Cooling-off periods allow consumers to review policy terms carefully, compare alternatives, and ensure the product meets their needs without being locked in immediately. To exercise cooling-off rights, consumers must notify the insurer in writing (email is usually acceptable) within the cooling-off period. The insurer must refund all premiums within 15 business days. Cooling-off rights generally don't apply if you've made a claim during the cooling-off period or for some commercial insurance policies. These rights are in addition to any cancellation rights you may have later, though subsequent cancellations may attract fees or short-term premium charges.