Cancel Insurance, then renew it?

[msandford]

Hi,

I'm 20 with 1yr NCB and I've just taken out insurance on my 182 with for ~£1300. However, I'm 21 in March and from then I can get insured for ~£900! So my question is, can I cancel my policy on my birthday and then take it out again, either with the same company or whoever is the cheapest? I know I will need to pay an admin fee for cancelling but it would be worth it!!

Thanks.

 

[JoedotwasT5phy]

Hi,

I'm 20 with 1yr NCB and I've just taken out insurance on my 182 with for ~£1300. However, I'm 21 in March and from then I can get insured for ~£900! So my question is, can I cancel my policy on my birthday and then take it out again, either with the same company or whoever is the cheapest? I know I will need to pay an admin fee for cancelling but it would be worth it!!

Thanks.

If its true theres no law against it. although i can't see being 1 year older making that much difference

 

[msandford]

although i can't see being 1 year older making that much difference

It's because I will be 21. Puts me in a different 'category' or 'risk group' I think The price really does drop like that, overnight. If it was my 21st birthday today it would cost £900, otherwise ~£1300. The other reason that it works out cheaper is that many insurers won't even look at me on that car until I'm 21.

 

[JoedotwasT5phy]

Well if it's that much of a saving and you 100% sure - go for it. Your well witin you rights.

EDIT - youd have to go with another company though.

 

[dannyboy1000]

You might want to check what the admin/cancellation charge will be before you cancel it as it varys depending on who your with.

 

[bmh.01]

I'm pretty sure you won't get all of it back after 14 days. Usually a percentage depending on the age of the policy, if you can do it and not loose money i'd be very surprised.

 

[simmo777]

Most companies work on a pro-rata basis if you pay the full premium plus an admin fee of cancellation - usually around £50.

 

[Renshaw]

yeah there'll be an admin charge tho for early cancellation of the policy. should be stated in your policy details how much (prob around £50)

 

[msandford]

Most companies work on a pro-rata basis if you pay the full premium plus an admin fee of cancellation - usually around £50.

Exactly. So if my insurance was £1200pa and I cancelled after 1 month I'd get £1100 - £admin fee back.

 

[caister]

Can you just not find insurance cheaper in the first place?

 

[msandford]

Can you just not find insurance cheaper in the first place?

No, that's the whole point. When you reach 21 you move into a lower risk group so your premium suddenly drops. Same happens when you reach 25 I think. So at the moment my cheapest insurance is £1300. But when I'm 21, it goes down to £900.

 

[Jakey]

My insurance dropped by £500 when i turned 21 so I had to put my car in a garage for a month until I turned 21! hardest month off my life but made my 21st that lil bit sweeter! This was with Elephant!

 

[msandford]

My insurance dropped by £500 when i turned 21 so I had to put my car in a garage for a month until I turned 21! hardest month off my life but made my 21st that lil bit sweeter! This was with Elephant!

I'm with Elephant too. Have always been the cheapest for me. Must've been hard leaving your car doing all that time! I can't not drive my 182 for a month and a half so I've paid the full wack now and will cancel on my birthday. That's the plan anyway.......

 

[DannyR]

My insurance renewal is always four days after my birthday

 

[msandford]

My insurance renewal is always four days after my birthday

Nice. Until you get to the age where that means your premium increases

 

[Cro]

You would loose that years NCB surely? and the cheaper quote may not apply anymore

 

[msandford]

You would loose that years NCB surely? and the cheaper quote may not apply anymore

My one years NCB is from March 2008 when I last had a renewal notice. So I'm using that at the moment, and when I cancel and take out another policy I'll use the same one again. So I will lose the NCB I would be building on my current policy, but I should be able to use the one I've already got again.