Insurance question

katy81 · 19 Mar 2025 at 22:19

Hi I normally pay my insurance off in one payment. I'm due to renew in may. In December it will be 5 years since my driving ban and I'll no longer need to declare it.

And I best just paying monthly till December. Updating my details to remove the ban and then paying the remainder off?

Or do you think they will refund the difference in December when I remove the ban?

muon · 19 Mar 2025 at 22:22

I doubt any change will be made until your next renewal.

If you get a speeding conviction for example, your price only updates at next renewal.

mattyfez · 19 Mar 2025 at 22:25

Yeah.. I think its the same as if you make a claim but in reverse..they don't hike your premium until renewal.

If you pay monthly, you are still buying 1 year of insurance, but its basically like taking out a loan over 12 months to pay for it, hence why it's a bit cheaper to pay in full when you can.

tom_e · 20 Mar 2025 at 06:31

Yeah that's not how it works. You buy for the year the finance company pay the insurer you pay the finance company so the insurance is already paid for in full.

Haggisman · 20 Mar 2025 at 08:03

There's no reason why you couldn't cancel in December and take out a new policy, however I'd imagine any admin/cancellation fee and loss of the year's NCB would wipe out any saving

katy81 · 20 Mar 2025 at 11:39

Well that sucks.

I've quoted with and without the ban. It's only an extra £125 a year. Would have been a nice Christmas bonus.

Oh well

cjgardens · 20 Mar 2025 at 19:39

As above. You'd have to cancel the insurance and then get a new cover. It's the same with claims. They don't lower the price once it's been 5 years

d_brennen · 20 Mar 2025 at 19:42

katy81 said:
Well that sucks.

I've quoted with and without the ban. It's only an extra £125 a year. Would have been a nice Christmas bonus.

Oh well

How much though? An extra 125 on 1100 quid is a bit different than 400 to 525

It's been a lottery the last few years with mine. Doubled then nearly halved again last year. No bans or points either

koolpc · 20 Mar 2025 at 19:46

muon said:
I doubt any change will be made until your next renewal.

If you get a speeding conviction for example, your price only updates at next renewal.

A workmate of mine never declares his speeding fine!!!

I told him if he has an accident his insurance will probably be null and void.

ezekial · 21 Mar 2025 at 07:15

They wont adjust the current policy amount and since you wont have long to go by then, best to wait until renewal

Adam_151 · 22 Mar 2025 at 08:07

tom_e said:
Yeah that's not how it works. You buy for the year the finance company pay the insurer you pay the finance company so the insurance is already paid for in full.

Two things i've always wondered...

1) How come no company actually does insurance on a true monthly rolling contract, rather than selling a year through a finance company, I'm guessing its juist historic reasons because thats the way insurance has always been sold and there isn't a technical or legal reason why they couldn't, Its surely not beyond computer systems to keep track of months towards a year NCB, transfer this credit between companies, and automatically excahnge it for a NCB year when it gets to 12....

2) How come when the only difference is how its paid for, go for the monthly payment option at all when it increases cost quite a bit, even if you couldn't afford to have it go out in one hit, surely its better to just get a credit card deal with however months intrest free on purchases, and stick it on there and simply pay it down on a monthly basis, and avoid the whatever markup the finance company the insurance company arranges through charges?

Maundie · 22 Mar 2025 at 08:48

Adam_151 said:
Two things i've always wondered...

1) How come no company actually does insurance on a true monthly rolling contract, rather than selling a year through a finance company, I'm guessing its juist historic reasons because thats the way insurance has always been sold and there isn't a technical or legal reason why they couldn't, Its surely not beyond computer systems to keep track of months towards a year NCB, transfer this credit between companies, and automatically excahnge it for a NCB year when it gets to 12....

2) How come when the only difference is how its paid for, go for the monthly payment option at all when it increases cost quite a bit, even if you couldn't afford to have it go out in one hit, surely its better to just get a credit card deal with however months intrest free on purchases, and stick it on there and simply pay it down on a monthly basis, and avoid the whatever markup the finance company the insurance company arranges through charges?

1, I'm guessing it wouldn't work in the insurances companies favour so it's not likely to happen

2, Not everyone is in a position to pay out several hundreds (sometimes thousands) in one go and same goes for everyone having a good enough credit rating to get a 0% card, I'm fortunate to be able to pay mine in full but I also put £100 a month into a separate account for next years insurance, tax, maintenance etc.

muon · 22 Mar 2025 at 11:41

Adam_151 said:
Two things i've always wondered...

1) How come no company actually does insurance on a true monthly rolling contract, rather than selling a year through a finance company, I'm guessing its juist historic reasons because thats the way insurance has always been sold and there isn't a technical or legal reason why they couldn't, Its surely not beyond computer systems to keep track of months towards a year NCB, transfer this credit between companies, and automatically excahnge it for a NCB year when it gets to 12....

2) How come when the only difference is how its paid for, go for the monthly payment option at all when it increases cost quite a bit, even if you couldn't afford to have it go out in one hit, surely its better to just get a credit card deal with however months intrest free on purchases, and stick it on there and simply pay it down on a monthly basis, and avoid the whatever markup the finance company the insurance company arranges through charges?

Admiral already do this. Just don't expect it to be cheap. The kind of people who are seeking out monthly rolling cover don't tend to be the safest people.

Experienced driver insurance by Veygo

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www.veygo.com

Haggisman · 24 Mar 2025 at 09:24

Adam_151 said:
Two things i've always wondered...

1) How come no company actually does insurance on a true monthly rolling contract, rather than selling a year through a finance company, I'm guessing its juist historic reasons because thats the way insurance has always been sold and there isn't a technical or legal reason why they couldn't, Its surely not beyond computer systems to keep track of months towards a year NCB, transfer this credit between companies, and automatically excahnge it for a NCB year when it gets to 12....

If you had a rolling monthly contract, after a claim you could just cancel the policy the next month; they would need to significantly increase the cost in order to compensate for that risk

I expect there's also something to do with the fact they make most of their profit by investing the money from the premiums rather than actually making a profit from the premiums themselves; if you pay for a year, the insurance company is guaranteed the whole 12 months' premium, so they can "safely" invest that money. If it were only for a month, then it would give them a lot less security.