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Cheaper insurence loophole



  Clio 1.2
So thought I would pop this in, not sure if anyone has had this before or posted (sorry if it has been)

The missus has been driving for a year now and managed to go from a 1.2 Clio to a 2.5 4x4 just before the full year at the same insurence price with no black boxes involved

Now, she is and has been a named driver on my policy as both my cars, she is 24 and I (at the point of insuring the 4x4) was 27 but with 10 years driving plus company car on private and 6 years no claims, this doesn't affect the loophole just the overall prices.

Anyway the loophole:

So the Clio in the first year was £1,500ish after she passed, then came the renewal down to £1,100ish (the policy started when she was on privisional hence the renewal before one year on full license)

Then the decision for the 4x4 came along as you'd expect rediculously high specially with a driver of less than a year on it, but wait ...

... what happens if I temp the insurence for 2 weeks on my old policy and set up and pay for the new policy the same day but to start with someone else at the end of the 2 weeks temp ...

This took a whopping, clean cut £1000 straight off the price

It seems as people see a car an want it before it is sold on, they quote and accept to insure the car straight away and be able to drive it;
- But if you temp it or swap it on your old policy for 2 weeks then you pay an admin fee (£50)
- If at the right time in the month you won't even have to pay the 2 weeks of use as an additional cost as policy would slightly go up with new car
- Then the cancellation fee (£36 in my case) then your new policy starts which you have already set up and pay either in full or deposit for monthly.

So;
- Price comes down by £1000
- Minus the 2 fees above (50+36)
- This brings the saving to £914.

If you think of doing this at each renewal start a new quote 2 weeks before your renewal to start at the old policy end date then the insurence will keep coming down

By the way this will not work by doing the quote 2 weeks early and accepting a day or 2 later as although the companies say they will honor your quote they check all your details over the phone then re-evaluate with a shorter amount of days until policy starts and tell you a higher price, trust me I tryed it on another 4x4 I bought a month earlier which went up by £240 from quote to acceptance, hence the find the loophole idea

Next renewals or new cars to your fleet give it a try and post your results will be interesting to see

 
I am confused.

I don't really understand how this is a 'loophole'.

(But at least you didn't call it a 'hack' ;) )


Are you basically saying to ask your current provider to convert your current policy into a 'Temporary Policy' for your new car?

And then start a new policy with another provider on the date the 'temporary policy' runs out?


If that is the case, I presume that you are happy she won't be getting a year's NCB from the original policy because she will have 'converted' it and it will finish before the 12 months it would have originally run for?

And that, if you have paid for the year up-front, I presume none of that money is refunded and therefore all of that money is gone within the X months you've had the original policy, rather than the 12 months of the full policy, which would effectively double the price of each months' insurance cost if you cancel/convert after, say, six months?

Why couldn't you just cancel the current policy and re-insure with a new provider on the day you get the new car if your current provider is charging silly money for the new car?


WRT the 'start a new quote 2 weeks before the renewal' bit, surely that is what everyone does?

Or do you wait until the day your insurance runs out and then spend your whole working day hiding from the boss and frantically ringing round to find someone that will cover you for a reasonable price, giving yourself no time to research their customer feedback and the details of their Ts&Cs?
 
  Clio 1.2
I know everyone does it earlier than the renewal but most of the time they don't accept it at that point and keep shopping in the hope it will go down.

But if you set the policy start date as 2 weeks ahead when quoting it comes down, I think you may be right it may not work so well for renewals but definately works when buying a new car.

Ye you are right about the pay for the year that wouldn't work on a renewal, that was me thinking it may work another way

Also the temp did not affect the no claims, what I did was temp the car to get it home on the policy of my other car which stayed as it was for the two weeks, then when the new policy started for the new car I took it off the temp which again did not affect getting a full years no claims as the old car was still running it's normal full year policy, so basically the temp cover is additional to the existing old cat policy.
 

0ss

ClioSport Club Member
That dude on the TV says best time to renew is 21 days before your policy ends. Whole insurance industry is a f**king joke.

So when you took out a policy on your new car did you just say it's a car you already own? Is it that rather than ticking the box marked "a car I've just bought" that saved you £1k?
 
  Clio 1.2
That dude on the TV says best time to renew is 21 days before your policy ends. Whole insurance industry is a f**king joke.

So when you took out a policy on your new car did you just say it's a car you already own? Is it that rather than ticking the box marked "a car I've just bought" that saved you £1k?
Yes because by the time the policy starts you own the car which is correct otherwise you would have to adjust the policy again when it does start
 
  Clio 1.2
"Why couldn't you just cancel the current policy and re-insure with a new provider on the day you get the new car if your current provider is charging silly money for the new car?"

Because insuring on the day with a new provider is £1k more expensive, that's the idea of this because people buy a car and insure on the day, if you insure early to start on the day you either pick the car up (if from a dealer who will hold it for you) or finish temp insurenece it is a lot cheaper.

Just been thinking about the no claims again, I see what you are on about with losing a year if cancelling a policy but now the majority of policies only accept 1,2,3,4,5+ no claims, not 6,7,8,9 and so on meaning if I have 6 years (so they say) but at the heighest they only accept 5+ then I am not losing anything.
Plus 1 extra year no claims has never brought any of my policies down by £100 let a lone £1000

Adding to this though the missus won't get any no claims, I see your point with that but if she doesn't always use my car then there is no point her being a main driver to gain them and spend around £3000 to insure as it would be false information if it is mine and she doesn't drive it the most, at present the policy I have doen't give named drivers no claims only 'named driver experience' don't know if that makes any difference?
 

bloke

ClioSport Club Member
  dan's cast offs.
Because insuring on the day with a new provider is £1k more expensive,
so if my wife's renewal is £500 and she renews early it will be £1,000 cheaper so they will give her £500?

insurance companies are a law unto themselves and work on the numberwang principle of quoting.
 

0ss

ClioSport Club Member
so if my wife's renewal is £500 and she renews early it will be £1,000 cheaper so they will give her £500?

insurance companies are a law unto themselves and work on the numberwang principle of quoting.
Only if she has a new car I think. Insurance is a scam that's for sure.
 
  Clio 1.2
so if my wife's renewal is £500 and she renews early it will be £1,000 cheaper so they will give her £500?

insurance companies are a law unto themselves and work on the numberwang principle of quoting.
I think we can all dream that would happen

As I said the amount would vary for each car/person but it gave a major price drop for me and the missus compared to insuring on the day of the car purchase.

Also whilst your here @bloke who's was the lovely looking Vette outside the workshop this morning couldn't help but notice on the way past
 

0ss

ClioSport Club Member


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