Cancel car insurance because it's cheaper elsewhere?

systemchokes · 4 November 2009 at 9:56AM

Hi,

I recently imported a car to the UK and needed insurance in order to register it. There are very few companies who insure using the chassis number, and as a result of little competition the price was ridiculous.

Now that I have the insurance and the car is registered there seems to be a lot more options for me, ie. I can actually use comparison sites, and the prices quoted are half what I am currently paying. Is it possible for me to cancel my current insurance (1 month into the policy) and take out a policy elsewhere now? Are there any drawbacks of doing that?

Thanks,
N

Quentin · 4 November 2009 at 10:01AM

The only drawback is the cost of cancelling.

Check the net savings before you cancel (there will be a cancellation charge to pay, and your refund won't usually be the full pro rata 11 months).

cogito · 4 November 2009 at 10:34AM

You don't say what sort of car it is and insurers would want to know if it's a 'grey' import which would cause problems if it's not been built to a UK specification. Some Japanese cars, for example, may have the same names as cars sold in the UK but have different body panels which means that parts have to be specially imported and repairs could take months.

I know that this isn't the question you asked but it may be relevant to your problem.

dunstonh · 4 November 2009 at 11:20AM

Now that I have the insurance and the car is registered there seems to be a lot more options for me, ie. I can actually use comparison sites

You would still fall foul of the modifications or import question though as cogito suggests.

dacouch · 4 November 2009 at 12:43PM

I warned you of the cancellation fee when you asked for advice on insuring the car on a chassis number. I assume you used a broker to get the cover, their cancellation costs will normally be pretty high as they will have a fee and often will claim back their commission.

http://forums.moneysavingexpert.com/showthread.html?p=24754781&highlight=#post24754781

This is fairly easy to do if you use a broker. I would recommend you try a broker who is based near an army base. This is because they frequently have UK armed forces returning from Germany and bringing cars they have bought in Germany or which have BFG registered. They need to reregister them with UK number plates so get the initial insurance on the chassis number as you are wanting to do.

This is fairly easy to do if you use a broker. I would recommend you try a broker who is based near an army base. This is because they frequently have UK armed forces returning from Germany and bringing cars they have bought in Germany or which have BFG registered. They need to reregister them with UK number plates so get the initial insurance on the chassis number as you are wanting to do.

Try Forces Financial on 01748 834848 who are based in Catterick, bear in mind they will want you to take out an annual policy and if you cancel it before the renewal there will be a biggish cancellation fee so it will be best to stay with them until renewal.

Cancel car insurance because it's cheaper elsewhere?

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