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Canceling car Insurance

I'm planning on buying a car for the summer, just a cheap run-around for work untill i go back to uni in september. Looking at insurance just now, what would be my best thing to do, i mean if i take a years policy i'm going to be canceling it after 4 months. Will most companies only refund a percentage of the premium? or will i just be charged a cancelation fee and get 8/12ths of the premium back?

I've been trying to find details about this on insurers websites, but not having much luck!


Cheers

Comments

  • dunstonh
    dunstonh Posts: 117,475 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Will most companies only refund a percentage of the premium?

    Usually its staggered so that its not exactly like for like. For example, after 4 months you will have something like 6 months refunded, not 8. Plus, you will usually have to pay a cancellation charge.

    You may find short term insurance is cheaper.
    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.
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