Right need some insurance help!

SS-89 · 10 Oct 2015 at 12:56

Ok so due to busy workload during the week I didn't sort out my new insurance to start today until yesterday (7 day free BMW insurance was covering me up until now).

Essentially the crux of the issue is that insurers hike up the premium if you quote and take out the insurance within a day or two of when you need it as they deem it a higher risk for whatever actuarial metrics they have. So much so that I'm paying 25% more on the policy than if I had quoted a week in advance of when I took the policy out.

Anyway Privilege allow a 14 day cooling off period (assume statutory?) and I have done online quotes for next Friday which essentially brings the premium down by that 25% additional premium I've paid. I assume I am well within my rights to cancel my current Privilege policy for a full refund on Friday and immediately take out the cheaper policy which is also with Privilege (aside from the obvious delay in getting my money back but that is less of an issue)?

rodenal · 10 Oct 2015 at 14:13

Not sure how it will go with it being the same , but tech ically I believe it's fine.

I'd be more inclined to phone them and demand they honour the lower price then take things from there

You can cancel within 14 days but will pay for the cover already provided on a pro rata basis potentially plus an administration fee

Gaygle · 11 Oct 2015 at 01:13

Didn't realise that. Pretty sure I've taken out insurance the same day as the quote and it hasnt affected the quote thiugh?

SS-89 · 11 Oct 2015 at 08:33

I think it's just a new scam to squeeze more money out of buyers as you're essentially a captive audience and need insurance. I could have sworn the same as well but if I do quotes now on the comparison website and for a weeks time there is quite a disparity! The guy on the phone said based on their metrics those that quote and take insurance out on the day are more likely to make claims within the first few days...may be true but the cynic in me thinks not.

Anyway will give them a call tomorrow and see if they'll just match my other quote and refund the difference. Otherwise I'll just cancel and take out a new policy based on the quote I did for this Friday.