Insurance question

[Chris8888]

Hi all,

I have recently renewed my insurance on 3rd August and currently paying ~£600.
I've recently bought a new car that I will be picking up on the 10th August and I got a quote of ~£1000 from the same insurer on compare the market.
I'm planning on just changing the car details on my current policy but if they give me a quote that's ridiculously high, am I able to just cancel the policy (since it would still be within the 14 days grace period of when the policy started) and keep my no claims discount to be able to go through with the compare the market quote? Or would it not be worth it since I'd be losing my NCD

 

[GravyMonster]

If you're within 14 days of taking out the policy, then you can cancel it for any reason and get a full refund, and it won't affect your NCD.

I think this is 14 days from purchase, not 14 days of the policy starting.

 

[Chris8888]

If you're within 14 days of taking out the policy, then you can cancel it for any reason and get a full refund, and it won't affect your NCD.

I think this is 14 days from purchase, not 14 days of the policy starting.

Okay good to know NCD won’t be affected thank you.

I just checked to make sure and the 14 days is within the policy’s start date not purchase date, atleast for Hastings Direct.

 

[sparton_SPA]

Do they still charge you the pro-rata cost of the number of days you have "used"?

 

[Chris8888]

Do they still charge you the pro-rata cost of the number of days you have "used"?

I’m not sure but I’m guessing probably yes

 

[Haggisman]

You won't lose your existing NCD when cancelling, even if you were to hypothetically cancel 1 day from the end of the policy (although this would be silly, as you wouldn't gain the extra year from the cancelled policy).

One thing to be aware of is many insurers now charge a "setup fee" which is non-refundable even if you cancel within the 14 days (iirc they're not allowed to charge you a cancellation fee within this period, so they use this obvious loophole to do so anyway... )

 

[tom_e]

You won't lose your existing NCD when cancelling, even if you were to hypothetically cancel 1 day from the end of the policy (although this would be silly, as you wouldn't gain the extra year from the cancelled policy).

One thing to be aware of is many insurers now charge a "setup fee" which is non-refundable even if you cancel within the 14 days (iirc they're not allowed to charge you a cancellation fee within this period, so they use this obvious loophole to do so anyway... )

I got stung by this a year or two ago. In my case it was my bike policy which is under £200 a year anyway, meaning the setup fee was something daft like 50% of the whole charge
The even bigger kick in the teeth was that my policy hadn't even started.

 

[HangTime]

Do they still charge you the pro-rata cost of the number of days you have "used"?

In conjunction with the setup fee they pretty much have to otherwise people could just keep hopping insurers every 13 days for 'free' insurance.

 

[im4gine3]

talking about car insurance.. i find it silly that when renewals come and the price is way higher than expected, you check other comparison websites for the best price, find out the company you are currently with is offering said price, but when you come to renew, they are unable to match/use that new policy quotation. They say i would have to cancel my current policy, and just create a new policy with that quote. Why is that? It seems awefully inconvenient for both parties

 

[GravyMonster]

Which they are banking on, so that you accept their increased renewal. You've saved time and they've scammed you for more than they otherwise would have.

Underhanded and devious? Sure, but that's capitalism, baby.

 

[Iamzod]

I thought quoting more for a renewal than a new policy had been banned?

 

[SimonRigga]

I thought quoting more for a renewal than a new policy had been banned?

they just claim it's not like for like.. there will be a very small difference.. that they can't offer on your renewal..

 

[im4gine3]

i was with Admiral who offered £1500 for my beemer... whilst a new policy with then was <£600

 

[sparton_SPA]

i was with Admiral who offered £1500 for my beemer... whilst a new policy with then was <£600

Happens too often - have to say their business model to block quotes from them during the renewal period is genius - equally as frustrating as a consumer.