Temporary car insurance - playing the game

Ricochet J · 13 Oct 2017 at 14:52

I got a quote to cover me for 7 days on a car using temporary car insurance cover. Quoted £60.

It was cheaper for me to take out a full annual policy and then cancel it 7 days later within the cooling off period, where it cost me a grand sum of £13. In addition to this the annual cover included extras such as breakdown cover, lost keys etc., The £60 temp car cover didn't include these.

Markup on temporary car insurance is ridiculous.

Clarkey · 13 Oct 2017 at 15:20

Yes but it's much more convenient isn't it.

Ricochet J · 13 Oct 2017 at 15:31

Clarkey said:
Yes but it's much more convenient isn't it.

It really isn't. Around 60% of the questions you're asked on a proper 12 policy are the same as those asked for temp cover.

Also given you're going to cancel in the cooling off period it doesn't matter who is cheaper annually by £x, as the difference is small pro rota over the 7 days you actually pay for.

Rich1988 · 13 Oct 2017 at 19:42

one of the reasons is that if you have an accident the cost is much higher to the insurer as they don't have your entire years premium to keep. Whereas if you take out a full years policy with a view to cancel it after say 10 days and then have a prang you will lose the entire lot.

Nasher · 13 Oct 2017 at 20:02

It's a bit of an abuse of the system, but who cares, it's way cheaper

jpaul · 13 Oct 2017 at 21:22

Do you need to submit a no claims justification (or you say you don't have one ?), if you do use ncb, then presumably you cannot be using it on another policy at the same time,
otherwise potential claim would be voided.

Also you usually have to declare if you have other cars insured at that address etc. - so need to take care policy is really valid.

Vertigo · 21 Oct 2017 at 21:50

Is there also not a chance that it would go on record somewhere and potentially count against you in the future? If a potential insurer could see that you've cancelled policies previously, especially after only a week, they might be less inclined to cover you or hike their premiums.

Jono8 · 21 Oct 2017 at 22:14

Rich1988 said:
one of the reasons is that if you have an accident the cost is much higher to the insurer as they don't have your entire years premium to keep. Whereas if you take out a full years policy with a view to cancel it after say 10 days and then have a prang you will lose the entire lot.

This. I don't think the OP has taken that into consideration.