Cancelling an Insurance Policy in Turkey and Getting a Premium Refund

Insurance policies are usually arranged for a year, but life can change within that time. You may sell your car, move home, leave Turkey at the end of an assignment, or find you have insured the same risk twice. That is when cancellation and premium refunds come up. This guide explains when policies are cancelled, how refunds are generally calculated and what to check first. The amount and method depend on the product, the reason and the policy conditions, so get the exact details from your agency.

When does cancellation come up?

• Selling the car: traffic insurance and kasko (comprehensive motor insurance) are reviewed when the car changes hands.
• Scrapping or deregistering the car: cancellation can be requested with the official document.
• Selling the home: home insurance and DASK (compulsory earthquake insurance) are handled according to the new situation.
• Double insurance: realising the same risk is insured under two policies.
• Leaving Turkey: especially relevant for health and car policies.
• Switching: moving to another insurer or a policy with different cover.

Product by product

Traffic insurance

Compulsory traffic insurance is required for every vehicle on the road under Law No. 2918 (Highway Traffic Law). While you own the car and it is used on the road, you cannot simply cancel and leave it uninsured. What happens when you sell the car is covered in our guide selling your car: what happens to insurance.

Kasko

Comprehensive car insurance is voluntary, so cancellation is more flexible. If your car is financed and the policy names the lending bank, the bank’s consent may be required. If a claim has been paid during the term, refund conditions may differ.

Home insurance and DASK

Home insurance is voluntary and can be cancelled when you sell, move or switch policies. DASK is compulsory for registered homes, so cancellation arises only in certain situations, such as the property changing hands. Ask your agency which document is needed.

Health insurance

Think twice before cancelling health insurance. Rights built up during the policy, completed waiting periods or a renewal guarantee may be lost. If you are switching, do not cancel the old policy before the new one starts, so you are never without cover.

How is a refund calculated?

The general idea is that premium for the unused period is refunded under certain rules, but the method is not always the same:

1. Reason: cancellation because the car was sold may be calculated differently from cancellation at your own request.
2. Policy conditions: each product’s and insurer’s refund rules are written in the policy.
3. Claims: if a claim was paid, there may be no refund or a limited one.
4. Payment plan: unpaid instalments are considered together with any refund.

A general calculation found online may not apply to your policy, so ask your agency for an estimate before cancelling.

The cancellation process

• Send your request to your agency or insurer in writing.
• Attach the document showing the reason: sale document, scrapping certificate, title deed transfer or new policy.
• Provide refund details; premiums paid by card are usually refunded to the same card. If you are leaving Turkey, check that the card or account will remain usable.
• Ask for written confirmation of the cancellation and keep it with the policy.

For car policies, also ask how your no-claims history will be reflected in a future policy.

Is there an alternative to cancelling?

Sometimes changing the policy makes more sense: moving home insurance to your new address, transferring kasko to a new car or reducing cover, for example by adding a deductible. If you let your old home and move elsewhere, the old policy may need updating for a rented property and the new home its own policy. Options vary by product and insurer.

Common mistakes

• Cancelling before the new policy starts and being left without cover,
• requesting cancellation only verbally with no written confirmation,
• overlooking the bank’s consent for financed cars,
• expecting a refund based on a general calculation,
• forgetting to cancel an automatic renewal instruction.

If you are thinking of cancelling a policy, talk to us first. Call +90 530 375 89 61 or message us on WhatsApp, with support in English, and we will compare cancelling with changing the policy.