Car insurance, should I cancel half way through?
Discussion
Evening All,
Have used my man math calculator to establish that manufacturer performance upgrade to exhaust and ECU is a good investment.
It doesn't affect the warranty and increases power from 320->360 and sounds like it should have from stock.
The initial policy quote for my car (no recent no claims in my name) was £600, then I moved before I took delivery and it went up to just under £1k which was extremely painful but unfortunately unavoidable, that was from Admiral. The policy is now 6 months old.
I've rung them to get a quote for the upgrade and they're saying £160. Plus I'll go over my initial mileage estimate by at least 3k miles, so they'll no doubt charge me for that too.
I've just re-run my car through Confused and I'm getting quotes for £850 with the upgrade and the higher mileage for a 12 month policy from Churchill/Privilege.
I haven't checked my policy for cancelation charge, but it's normally around £50-75, so financially in the short term, would seem to make more sense to take out a new policy and get a refund for the remaining 6 months from admiral, than pay them more money. The downside is obviously I'm starting again for NCB and missing out on the 6 months.
I've also got GAP insurance taken out on the same day as the above, not sure if this is affected, the residual on confused is still the same as when I bought it, although, I'm quite sure it's worth less as another 6 months has passed.
Would appreciate advice on whether it's a good idea to cancel and get a new policy or just take the pain and cough up even more cash to Admiral to get the first years NCB in 6 months rather than 12.
Cheers,
HBT.
Have used my man math calculator to establish that manufacturer performance upgrade to exhaust and ECU is a good investment.
It doesn't affect the warranty and increases power from 320->360 and sounds like it should have from stock.
The initial policy quote for my car (no recent no claims in my name) was £600, then I moved before I took delivery and it went up to just under £1k which was extremely painful but unfortunately unavoidable, that was from Admiral. The policy is now 6 months old.
I've rung them to get a quote for the upgrade and they're saying £160. Plus I'll go over my initial mileage estimate by at least 3k miles, so they'll no doubt charge me for that too.
I've just re-run my car through Confused and I'm getting quotes for £850 with the upgrade and the higher mileage for a 12 month policy from Churchill/Privilege.
I haven't checked my policy for cancelation charge, but it's normally around £50-75, so financially in the short term, would seem to make more sense to take out a new policy and get a refund for the remaining 6 months from admiral, than pay them more money. The downside is obviously I'm starting again for NCB and missing out on the 6 months.
I've also got GAP insurance taken out on the same day as the above, not sure if this is affected, the residual on confused is still the same as when I bought it, although, I'm quite sure it's worth less as another 6 months has passed.
Would appreciate advice on whether it's a good idea to cancel and get a new policy or just take the pain and cough up even more cash to Admiral to get the first years NCB in 6 months rather than 12.
Cheers,
HBT.
handbraketurn said:
How much of a difference would 1ncb give to a quote do you think?
Rather less than I thought, having worked it out!NCB is something under 10% per year in the first four years, so you're losing around 5% (for 6 months) each year for 4 years. So probably around £150/200 over 4 years.
Worth checking exactly how much your refund will be, too. Some brokers absolutely stiff you on cancellations and changes. Also check your cover is equivalent - additional drivers, excess, driving other cars, etc.
I thought GAP policies were normally separate and run for several years. Cancelling your insurance shouldn't affect the GAP at all. But if you've got addons like legal or breakdown cover, those may well be tied to the original policy, and you may not get any refund.
silentbrown said:
handbraketurn said:
How much of a difference would 1ncb give to a quote do you think?
Rather less than I thought, having worked it out!NCB is something under 10% per year in the first four years, so you're losing around 5% (for 6 months) each year for 4 years. So probably around £150/200 over 4 years.
Worth checking exactly how much your refund will be, too. Some brokers absolutely stiff you on cancellations and changes. Also check your cover is equivalent - additional drivers, excess, driving other cars, etc.
Refund should be £400-450 odd quid.
handbraketurn said:
I've looked into it in the past, I think they're not allowed to charge you more than about £50 now for administration, if you paid up front. It's more of a problem if you have to cancel finance, that is where you can get charged all kinds of fees as they're loosing their profit from interest. As well as the £50 admin charge.
Refund should be £400-450 odd quid.
You need to speak with your insurer to get a refund figure or read your documents very carefully, it should be stated what sort of refund you will be entitled too especially after 6 months, i will be very surprised if you get back 50% minus their admin fee!Refund should be £400-450 odd quid.
Brads67 said:
I`ll start a sweepstake that you get less than £50 back if you cancel.
I dont' fancy your odds. https://www.elephant.co.uk/car-insurance/customer-...
Cancellation after 14 day:-
If you wish to cancel your policy you must contact us. If you cancel your policy after the 14 day cooling off period, but before the end of its term, EUI Limited will make an intermediary charge to cover the costs of setting up your policy and arranging for it to be cancelled. The insurer will also make a charge for the time on cover. If a claim has been made the full premium for the year will be due. If your policy covers more than one product, we will select the single highest cancellation charge that applies, from the list below. We will also apply an additional charge of £5.00 if you have purchased any motor Policy Upgrades.
Vehicle - £49.50
227bhp said:
Personally i'd wait for 6 months then do the upgrade and re-insure.
That would take me to June where it's much more pleasurable to drive a car rather than now where it's just something to drag me through the damp, frozen, salty, slippery, dark gloom to and from work.
Most def the most sensible option, but this is my christmas present to myself and I'm far to impatient to wait. That would take me to June where it's much more pleasurable to drive a car rather than now where it's just something to drag me through the damp, frozen, salty, slippery, dark gloom to and from work.
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