Can I cancel my car insurance?

vignezh · 12 September 2017 at 4:33PM

Thanks in advance for your suggestions and sorry for being naive with my question.

I took an comprehensive insurance or my car with 1st direct in August and got a quotation for 330 for the year and am paying in installments about 30 quid a month.

Just this month, I moved house and when I tried to update my address, they recalculated and now saying I will have to pay 220 upfront or will pay 60 quid a month.

Having glanced at my agreement, cancellation charge is 50 quid. Does it makes sense that I pay the cancellation fee and go to someone else for a cheaper quote for the new address? Am I missing something here? I have 9 years NCD.

k3lvc · 12 September 2017 at 4:35PM

In theory yes but

a) make sure you can actually get a cheaper quote before doing anything
b) you'll still only have 9yrs NCD

Aretnap · 12 September 2017 at 4:40PM

Whether or not it's worth cancelling depends on how much (if at all) cheaper you can get insurance with someone else at the new address. Put your details into a comparison site and if you can find equivalent cover for less than (approximately) £500 then it's likely to be worth cancelling.

Apart from the cancellation fee, the main disadvantage of cancelling midway through the policy year if that you won't get any NCB credit for an incomplete year, but (a) it's only a month or so and (b) once you have 9 years, additional years usually make virtually no difference to your premium anyway.

forgotmyname · 12 September 2017 at 4:54PM

Cancelling will be £50 + the time on cover which maybe more than you think.

Aretnap · 12 September 2017 at 4:56PM

forgotmyname wrote: »

Cancelling will be £50 + the time on cover which maybe more than you think.

One twelth (-ish, depending on the dates) of £330 = just under £30.

vignezh · 12 September 2017 at 9:33PM

Thanks all for the replies. I got an email from 1st Central thanking for letting them know about the address change.

Also, since I didn't purchase the new quote,

Your car insurance will be cancelled on 19/09/2017. Unfortunately, this will mean that:

You will be uninsured
A £50 cancellation fee will be charged.
You will not earn any No Claims Discount for the current year

I managed to get a cheaper quote for the new address from LV for 378 (annual price).

I think I will still save if I cancel 1st Central and start fresh with LV!

Can I cancel my car insurance?

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