Amended Motor Policy

Bronnie

Apologies if you've already read this, I originally tagged it onto an old thread, but it didn't seem to get noticed, has got lost and I need to take some action fairly soon.

My DD is getting a new car next week and has just amended her existing Tesco policy (commenced Jan 2009). The new car is insured from the 20th May 2009 , first payment at amended rate due 1st June 2009.

Her monthly premium has gone up from £58 to £108, (from 3rd party F&T to Fully Comp) for the remainder of the term.. She is in her second year of driving, but unfortunately was a bit too hasty amending her existing policy. I have found an annual quote of £865, with another company which I think would be better, even though she'd go back to the start of year 2 again.

The cancellation rate for the existing policy is stated as "1 month's premium plus £10". If she were to cancel the policy would cancellation rate be 1 month's premium at the pre-20th May rate or the new monthly premium? (ie £68 or £118)

I am suspecting, knowing Tesco, it would be the latter since it can be argued they have already amended the policy even though she is still driving round 3rd party in the old car atm, but would appreciate any input, before I give them a ring.

Thanks.

dacouch

As the new additional premium for the new vehicle has not kicked in yet it would generally be on the old instalment although they will probably include any admin fee for the work in adjusting the policy which is generally circa £25.

When your taking into account any savings with the new policy bear in mind she will earn her 2nd years no claims bonus later and also how many instalments she would actually be paying at the higher amount as Insurance instalments often have a deposit for the first premium and then 9 or 10 instalments (Its not always this way but check so you can work it out)

BenL

As the change has not come into effect yet I would think Tesco could "windback" the change in their system and then perform the cancellation.

This would make it easier for them to calculate the cancellation request and any premium still required to be paid.

TEDDYRUKSPIN

Too much guessing. Phone them up! Tell them that you have found a much cheaper competitor at that price and ask if they can match it? If not, say you want to cancel it from effective of a specific date.

Bronnie

Of course, I'm going to phone them up, TeddyRukspin, but forewarned is forearmed :think:

Thanks to all for your replies!

woody01

Sell her a car and get her a bus season ticket

£68p/m is madness.........over £100p/m is insanity

Bronnie

Post 31

http://forums.moneysavingexpert.com/showthread.html?p=21302061&highlight=#post21302061

You should understand.........'Real Life' and all that!

woody01

Bronnie wrote: »

Post 31

http://forums.moneysavingexpert.com/showthread.html?p=21302061&highlight=#post21302061

You should understand.........'Real Life' and all that!

I understand that paying over £1000 a year for insurance well enough.
High risk = High premium