Insurance Question

oHUTCHYo · 15 Aug 2012 at 15:32

OK, idiotic question I know, but I previously always paid for my car insurance by monthly direct debit. This time around I paid a year in full - if I want to buy a different car half way through the insurance policy do I just pay any additional cost on the premium (if it costs more to insure) or have I lost what I paid and need to pay again?

Confused :confused:

Gornall · 15 Aug 2012 at 15:34

Either pay an increase in premium. Or cancel the policy and potentially get a refund (depending on time on policy and any fees etc) and go elsewhere.

stoofa · 15 Aug 2012 at 15:35

You should be able to move your policy from your old ccar to your new one. If there is any addition to pay you'll need to pay that obviously.
What you need to remember is that all insurance actually needs to be paid for up front. When you pay monthly the insurance firm have actually taken a loan out for you and you're actually paying the loan back - the insurance was all paid for up front.

The only problem occurs if you buy a new car that your current insurance company don't want to insure, in other words they cannot offer you cover. In that case you'll need to cancel and move. There will be a cancellation clause, so you'll lose a little money and also as you break a policy before completion, you'd lose that years NCB.

oHUTCHYo · 15 Aug 2012 at 15:42

Thanks guys, well answered as always

Jono8 · 15 Aug 2012 at 17:25

If you have paid up front, and provided you havent made a claim, you should get back pro rata what you havent used if you cancel the policy...minus an admin fee ofcourse.

Tute · 15 Aug 2012 at 17:40

Can I just ask, if you change car but stay with the same company, does the partial NCB you've built that year keep going or does it reset when you change vehicle?

Kenai · 15 Aug 2012 at 17:45

Tute said:
Can I just ask, if you change car but stay with the same company, does the partial NCB you've built that year keep going or does it reset when you change vehicle?

It carries on - it only gets 'reset' if you cancel the policy and go elsewhere. Simply changing the vehicle on the policy doesn't affect it.

(Obvious exclusions such as crashing your car into a tree being the reason you're changing it notwithstanding

)