Re-broke car insurance rather than just cancelling it?

p1an0player

I want to cancel my car insurance mid-term

I read this, what do you think of the idea?

"Here is a tip - when calling insurer to cancel (for whatever reason) if you are charged this, ask them to issue a new policy. Sounds mad, but they can't refuse. Once you started new policy, next day call them back and cancel. You will be charged time on cover for that day.( because you are now within your 14 day cooling off period) If you paid your premium in full for previous policy, you only charged t.o.c for that too. It's called a re-broke. You wont be charged cancel fee of the short term rate.

- Allan, durham" (moneysupermarket)

raskazz

It's rubbish. An intermediary will normally only offer a rebroked policy if the customer requests changes and they are unacceptable to the insured's current policy. They can certainly refuse if a customer simply requests a rebroked policy for no reason other than to try to avoid a cancellation fee. Even if a rebroked policy is offered, that doesn't mean that cancellation charges will be waived for the original policy.

p1an0player

Thanks.
My policy is with ibuyeco
What will the cancellation fee be (I can't see it on the website)?

darich

raskazz wrote: »

It's rubbish. An intermediary will normally only offer a rebroked policy if the customer requests changes and they are unacceptable to the insured's current policy. They can certainly refuse if a customer simply requests a rebroked policy for no reason other than to try to avoid a cancellation fee. Even if a rebroked policy is offered, that doesn't mean that cancellation charges will be waived for the original policy.

Completely agree.

To start a new policy so it can be cancelled, must mean the old one is cancelled first. So there is no way round it.

The charge levied by the broker/company will be in the terms and conditions and could vary depending on whether you pay it monthly or whether you paid up front.

jeppy

If you change your circumstances to the point that your existing insurer says no then they should cancel pro rata rather than short period.

Eg you now want to inc a 17 year old driver with an IN10!! or you want to inc a dangerous job.