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  • FIRST POST
    • eddddd
    • By eddddd 6th Oct 16, 11:01 AM
    • 8Posts
    • 4Thanks
    eddddd
    Short Term Car Insurance
    • #1
    • 6th Oct 16, 11:01 AM
    Short Term Car Insurance 6th Oct 16 at 11:01 AM
    Hello all,


    I have a question with regards to short term car insurance, my situation is described below:
    • I am going abroad from January for 6 months, I will be declaring my car SORN during this time.
    • However my current insurance policy finishes at the end of this month, therefore I have a 2 month period that I need to insure my car for.
    • What is the best way to do this?
    • Do I need to take out specialist short term cover?
    • Or shall I start a new policy then cancel? Basically trying to figure out the cheapest option.
    Any advice is appreciated.
    Thank you, Ed
Page 1
    • paddyandstumpy
    • By paddyandstumpy 6th Oct 16, 11:23 AM
    • 336 Posts
    • 93 Thanks
    paddyandstumpy
    • #2
    • 6th Oct 16, 11:23 AM
    • #2
    • 6th Oct 16, 11:23 AM
    An annual policy is usually the cheapest option, as you can cancel pro rata. This means you'll only be charged for the number of days you've been on cover.

    One thing to be wary of is the cheaper policies normally have the biggest fees when cancelling, it's not unusual to charge up to £75 in a fee. Plus then, if it's a policy via a Broker, the Broker may reclaim any commission loss from any refund due to you.

    My advice would be to use a direct writer (and take out a policy directly), Direct Line, Aviva, LV or the like, which will remove the commission element and mean you only pay one cancellation fee. You should find these fees in the key facts documents which will be available on the insurer website.

    The other thing to consider is still using a cashback website. If the policy is live for 2 months you may just qualify for cashback on the purchase, lessening or perhaps negating the cancellation fee you'll inevitably be charged.
    • mattk_180
    • By mattk_180 6th Oct 16, 11:44 AM
    • 268 Posts
    • 213 Thanks
    mattk_180
    • #3
    • 6th Oct 16, 11:44 AM
    • #3
    • 6th Oct 16, 11:44 AM
    Similar to above, just take an annual policy being mindful of the cancellation fees and then cancel when you no longer need the policy.


    Will still likely be cheaper than a temporary policy which are usually extraordinarily expensive and should only be used for a very short amount of time.
    • Quentin
    • By Quentin 6th Oct 16, 12:13 PM
    • 30,270 Posts
    • 14,364 Thanks
    Quentin
    • #4
    • 6th Oct 16, 12:13 PM
    • #4
    • 6th Oct 16, 12:13 PM
    Similar to above, just take an annual policy being mindful of the cancellation fees and then cancel when you no longer need the policy.....
    Originally posted by mattk_180
    The "catch" in doing this is that should you need to claim or a successful claim is made against you then you will have to pay for the full year's premium, (and lose some NCD if it's unprotected)
    • paddyandstumpy
    • By paddyandstumpy 6th Oct 16, 12:18 PM
    • 336 Posts
    • 93 Thanks
    paddyandstumpy
    • #5
    • 6th Oct 16, 12:18 PM
    • #5
    • 6th Oct 16, 12:18 PM
    The "catch" in doing this is that should you need to claim or a successful claim is made against you then you will have to pay for the full year's premium, (and lose some NCD if it's unprotected)
    Originally posted by Quentin
    Fair point. Also worth mentioning then, if you pay for the policy in installments, and make a claim, the insurer can chase you for the full annual if you cancel mid-term.
    • mattk_180
    • By mattk_180 6th Oct 16, 4:44 PM
    • 268 Posts
    • 213 Thanks
    mattk_180
    • #6
    • 6th Oct 16, 4:44 PM
    • #6
    • 6th Oct 16, 4:44 PM
    Yeah, what these guys above me said.


    Basically just take everything that has been said and consider which route you want to go down looking at the pros and cons.
    • rs65
    • By rs65 6th Oct 16, 7:31 PM
    • 4,931 Posts
    • 2,319 Thanks
    rs65
    • #7
    • 6th Oct 16, 7:31 PM
    • #7
    • 6th Oct 16, 7:31 PM
    Have you considered leaving insurance in place? Are you happy to have it uninsured whilst you are away?
    • eddddd
    • By eddddd 10th Oct 16, 9:20 AM
    • 8 Posts
    • 4 Thanks
    eddddd
    • #8
    • 10th Oct 16, 9:20 AM
    • #8
    • 10th Oct 16, 9:20 AM
    Hi All,


    Thanks for the comments, that's really helpful.
    Will make some calls and keep you updated.


    Any idea what the value of the cancellation fee is likely to be?
    • Quentin
    • By Quentin 10th Oct 16, 9:47 AM
    • 30,270 Posts
    • 14,364 Thanks
    Quentin
    • #9
    • 10th Oct 16, 9:47 AM
    • #9
    • 10th Oct 16, 9:47 AM
    The actual cancellation fee is like a piece of string (varies from nothing to £75+)


    Each company decides its own policy on this fee.


    Also expect a charge for cancelling early if paying by monthly instalments, plus different companies operate their "pro rata" refund differently - so if you cancel after 6 months check whether they refund you the whole of the "unused" 6 months (also beware brokers who may also charge separate cancellation fees/clawback lost commission/clawback any "special" discount etc)
    • forgotmyname
    • By forgotmyname 10th Oct 16, 12:11 PM
    • 23,348 Posts
    • 9,201 Thanks
    forgotmyname
    My insurer charge £15 admin fee but my daughters is £75. But needs must when everyone else is coming in at over £1000 for the year.

    We dont intend on claiming ourselves, so fingers crossed there wont be any issues.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
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