Can I get an extra year of NCD via cancelling?

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Mishomeister
Mishomeister Posts: 1,051 Forumite
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in Insurance & life assurance
My renewal date for a house insurance is about a week before 2 years from my last insurance claim turn.
Would there be any obstacles in me taking out a house insurance with whichever insurer, and as soon as 2 years turn and I am still within 14 days cooling off period, cancel that insurance and arrange another one with 2 years no claim discount?


I don't really like one week losing me a whole year of NCD.
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  • Quentin
    Quentin Posts: 40,405 Forumite
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    Do dummy to see if it is a worthwhile exercise. (NCD on house insurance is a marketing gimmick rather than proper transferable NCD like car insurance)

    Cancelling during the cooling off period usually still costs a cancellation fee as well as the premium for the time on cover
  • Mishomeister
    Mishomeister Posts: 1,051 Forumite
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    Quentin wrote: »

    Cancelling during the cooling off period usually still costs a cancellation fee as well as the premium for the time on cover

    Are you sure, especially cancellation fee as the whole point of the cooling off period supposed to be to allow the customer to change their mind. If there is a cancellation charge, what's the point of the cooling of period?
  • paddyandstumpy
    paddyandstumpy Posts: 1,486 Forumite
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    Mishomeister wrote: »
    Are you sure, especially cancellation fee as the whole point of the cooling off period supposed to be to allow the customer to change their mind. If there is a cancellation charge, what's the point of the cooling of period?

    Firms are entirely entitled to charge a cancellation fee during cooling off. This can be a reduced fee for the first 14 days, and increased after; but yes they can charge (as long as their T's & C's outline this).
  • dunstonh
    dunstonh Posts: 116,373 Forumite
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    Mishomeister wrote: »
    Are you sure, especially cancellation fee as the whole point of the cooling off period supposed to be to allow the customer to change their mind. If there is a cancellation charge, what's the point of the cooling of period?

    The cooling off period is a right to change your mind and pay no more than the time on cover and an admin charge. Outside of that cooling off period, there is no statutory right to cancel. However, in reality, companies allow it in most plans.

    It is quite logical as people could change their insurance every 14 days and get free cover forever more if you allowed it to be free of charge.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Mishomeister
    Mishomeister Posts: 1,051 Forumite
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    I have no problem obviously paying for the period I have cover but would really want to avoid any cancellation fee.
  • Quentin
    Quentin Posts: 40,405 Forumite
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    Mishomeister wrote: »
    ..... really want to avoid any cancellation fee.


    That's why I mentioned it - you hadn't factored in the cancellation fee - as suggested do dummy quotes online with your claim within the last 2 and 1 years to see if this is a cost effective "wheeze"
  • Amst
    Amst Posts: 141 Forumite
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    Mishomeister wrote: »
    I have no problem obviously paying for the period I have cover but would really want to avoid any cancellation fee.

    But you're happy to mess them around by arranging cover, getting legal documents drawn up and issued and then cancelling them...with no cancellation/admin fee? You're everything that is wrong with this site. :money:
  • Mishomeister
    Mishomeister Posts: 1,051 Forumite
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    It is all automated nowdays all the quotes produced by computer which also sends all the paperwork. |I can not se how a charge of more that a couple of punds can be justified there
  • rudekid48
    rudekid48 Posts: 2,382 Forumite
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    Mishomeister wrote: »
    It is all automated nowdays all the quotes produced by computer which also sends all the paperwork. |I can not se how a charge of more that a couple of punds can be justified there

    Are those free computers?
    All matter is merely energy condensed to a slow vibration, we are all one consciousness experiencing itself subjectively, there is no such thing as death, life is only a dream, and we are the imagination of ourselves.
  • Mishomeister
    Mishomeister Posts: 1,051 Forumite
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    rudekid48 wrote: »
    Are those free computers?
    Are you saying that the automated actions by the computers that would take a couple of minutes would have a cost of £35 to the company?
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