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Cancelling Car insurance?

Discussion in 'Motoring Forum' started by Saldawop, Feb 23, 2012.

  1. Saldawop

    Saldawop Active Member

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    Am in the process of buying a new (2nd hand) car.Have done some online quotes and they all come out at about £100 more than I am currently paying (£600+ for TPFT on an old banger!!!)
    Anyway, phoned up my insurance company to see how much extra it would be.

    £470 TPFT or a bargain £492 Fully Comp:mad:

    I am just under 2 months into the policy.I pay by instalments .
    With admin fees and charges would I be better off cancelling the policy and going with the new company?
    Is it a hassle cancelling insurance?
  2. un1eash

    un1eash Active Member

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    Just ring up and find out the cancellation fee, sometimes it can be quite high due to the fact you signed into a 12 month contract.

    ps. Asking to cancel may bring down the cost of changing cars when they ask your reason for cancelling.
  3. Saldawop

    Saldawop Active Member

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    Yes, should have called them before posting I guess
    If I stay with AA it will cost me £622+£490 = £1120 for the remaining 10 months
    or go with Aviva @ £702 + £176 cancellation fee from AA = £878 for 12 months!!

    Not bad huh? 46 y/o ,Full NCD, no convictions or claims.I thought I had put Baghdad instead of Camden as my address:(
  4. 961

    961 Active Member

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    The figures you give are not clear

    However, ask your ins co how much to cancel your existing policy. You will lose mega regardless of paying by instalments or not

    What I would suggest is logging on to a comparison site and seeing what your current company will quote for a new policy and negotiate from that figure bearing in mind they'll give a big discount for first year

    It's basically no hassle to cancel but it is expensive to change cars during what I guess is your first year of insurance. They do offer cheap cover for a new policy but always charge for changes
  5. Saldawop

    Saldawop Active Member

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    Am with AA, am paying £622 TPFT .To cancel will cost me £176.
    Of course I was expecting to pay to change cars but was gobsmacked by the amount!
  6. 961

    961 Active Member

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    Quite

    I'd ask for your quote to be escalated to underwriter for individual consideration

    The market is so skewed to getting business from comparison sites that any change during the year seeks to claw back the discount given

    It may be worth consulting a broker for advice
  7. Saldawop

    Saldawop Active Member

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    Just got a quote from the AA (my current insurer) as a new policy. Came in at £720.

    I phoned up first time to be given the £470-£490 figures.When I called again to enquire about cancelling I was told yes, the figures I had previously been quoted were correct!
  8. 961

    961 Active Member

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    It may well be worth paying the £176 to cancel and then start again

    Current first year deals are so skewed to hauling in business from web comparison sites that they really are unbeatable when it comes to renewal or when you change your car

    Also, charges for paying per month instead of up front are mega

    Where you are now, I'd pay the cancellation charge and buy new, even from the same ins co, via the web comparison sites, or go to a broker

    And, if you can, pay the year premium up front, even if you use the card to do it. They really will take you to the cleaners if you change the car during the year

    Whatever, ensure you get a note of no claim while you've been insured
  9. Saldawop

    Saldawop Active Member

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    This is my 3rd year with the same company
  10. 961

    961 Active Member

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    In that case it is a total rip off if there has been no claim or you have bought a Ferrari

    How are they going to help you if you have a claim?

    Time to move on I think
  11. Saldawop

    Saldawop Active Member

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    I think so .The thing is I have always done comparisons and they have been either the cheapest or close enough to make it not worth my while switching.
    • Thanks Thanks x 1
  12. OldSwitcheroo

    OldSwitcheroo Active Member

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    Was in a similar position recently. Was paying £400 for TPFT on an old banger worth £300. Got a new, second hand car worth about £3500 and changed my existing policy to fully comp for the remaining 10 months of the policy for an extra £350 on top of what I'd paid.

    Are you sure the reason yours has gone up because of a higher insurance group / engine size / value etc (like mine was) To be honest if the old car you were driving was an old banger and the new one isn't so much, I would expect such a hike. If you upgrade your car, insurance usually follows suit (especially from a banger).

    AA have always been ridiculously high whenever I've got quotes. Currently with Octagon Insurance and they were the cheapest by a mile with comparative policy. In addition, I keep the £100 excess on my policy, something I'd be looking at paying £300+ on any other quotes.

    Food for thought...
  13. Saldawop

    Saldawop Active Member

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    Dont get me wrong, if when doing a quote for a new policy ,on the new car was £1100 or there abouts I would accept it, but when that comes in at £720 its a bit galling for them to expect me to pay an extra £500 almost.

    I, of course expected to pay more + an admin fee.I figured at about £200 ,and thought I was gonna get some change from that!!
  14. 961

    961 Active Member

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    More and more you find the customer that stays gets to pay to fund new business, but I can accept that some brokers are doing exactly what we are doing, trawling the market for those that are seeking to move, so that their customers may be doing worse twice over? Is that where you have ended up?

    I went round this merrygoround for several years until I found LV on a web comparison site. I've been with them 3 years and the premium has gone up about 5% each year. Not the cheapest but worth a punt if you get a quote that suits

    Car Insurance UK: get a car quote to protect your vehicle with LV=

    No connection and no bung for me if you go with them but worth asking them for a quote to compare with others you have had. What I can say is that the premium they gave me 3 years ago, from a web comparison site, has only gone up 5% each year since
  15. Badger0-0

    Badger0-0 Well-Known Member

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    Car insurance companies ripping us off shocker!!!

    That's what you'd think, isn't it?

    But the tripe the companies come out with is that owners of old cars are less likely to maintain them properly and hence are a higher risk.

    But when you ask why the price has rocketed when you have a supposedly safer, more reliable car, they give the exact answer you quoted.

    I've never known any other industry that wants everything their own way, in the way insurance companies do.

    As you might have guessed, I hate insurance companies more than anyone :D
    Legalised theft, imo.
  16. paulk

    paulk Member

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    Have they given a reason why the cancellation charge is so high? Is it because of the monthly payment?
    Only reason I ask is that I've recently (Jan '12) cancelled a policy with Aviva. Pay annually and was refunded the remaining full months moneys minus a £45 cancellation fee.

    I look around at insurance yearly. Its a nuisance, but once I've established if I can save money by moving I'll then give whoever my present insurers are the chance to beat or match my price. If they ensure it is not worthwhile to leave I'll renew, but if not I move on. Sadly there are very few industries that reward loyalty nowadays and car insurance is def not one of them from my experience.
  17. OldSwitcheroo

    OldSwitcheroo Active Member

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    It may be safer, but it also costs more to replace / payout if anything goes wrong, to be honest as long as the car is MOT'd then it's classed as 'safe'.

    My banger cost me £300, my new second car was 10x that to buy.

    In fairness, they didn't charge me 10x the amount of insurance.

    Now, don't get me wrong, I'm not defending the insurance companies, indeed I currently have a case going direct to the financial ombudsman with regards NCD and the deduction of, following a claim, but that's another story...
  18. paulk

    paulk Member

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    Ironically new cars are cheaper to insure. Had a BMW and swapped that for a new C220 late last year. The C220 was worth a lot £ more, bigger engine etc. but around £300 a year cheaper to insure compared with the BMW from owning it at 18 months old to when we sold it.

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