Cancelling insurance?

[Conor D]

I've found a good MX5 for sale, and have the cash sitting to buy it.. But I haven't got the insurance 100% sorted yet, and by the looks of it the insurance is going to be very expensive.. I'm considering going ahead and buying it, then worrying about the insurance..

The thing i'm not sure is, can I pay for the insurance monthly.. and providing I don't have to claim, cancel the insurance after the summer and not have to pay any more. Or pay for it all up front, do the same and cancel.. And then get a refund of the remaining premium?

One company said they would charge £25 administration if I cancelled.. and they would keep any commission on the insurance (They said this only changed recently..)


I need a MX5 now..

[iAlex]

From what I understand (never paid monthly) you are not paying monthly as such rather financing the entire premium if you see what I mean?

[Conor D]

iAlex said:

From what I understand (never paid monthly) you are not paying monthly as such rather financing the entire premium if you see what I mean?

I'm aware of that, and that if you claim you still pay the full premium.. But if you pay for 2 months, and go to cancel the Insurance.. Do you still have to pay, or are the remainder of the months refunded?

[Devil2575]

Sort the insurance out first. Do not buy a car before you have a quote and know how you are going to pay it.

[Office_Monkey]

be careful - some companies will let you pay monthly, but you are actually taking a loan out, so read the small print!

[vxdave]

yes, in most cases you will get a refund for the months/days you have not used. You will be charged some kind of cancellation fee. I have done this with Elephant, Admiral and Aviva having paid for the full year up front. They charged me about £50-£70.

[limpsfield]

Conor D said:

I'm considering going ahead and buying it, then worrying about the insurance..

this is just crazy.

have you tried Competition car Insurance?

http://www.competition-car-insurance.co.uk/

they have proved very competitive for me after the usual trawl of confused.com etc and both cars are now with them. great servcie

Insurance cancellation policies can vary. CCI above is not that fantastic in terms of % refunded if you are thinking of cancelling so check that - I just cancelled a policy with MoreThan and was pleasantly surprised by how much I got back.

As mentioned above, paying monthly is an expensive in in terms of APR %. If you can, pay for it up front and do it on a credit card (which you will probably have to apply for to get the offer) where you get interest free on purchases for first 9 months or whatever and pay it off monthly on that.

But again, make sure you check the specific cancellation terms of your policy - what % you will get back after so many months.

Edited by limpsfield on Thursday 1st July 16:00