Cancel car insurance and get new policy with the same company?

Hackneygirl

Astaroth wrote: »

Remember however that yo do become a new customer again and so lose any benefits of being with them for X years. Most insurers the benefits are minimal but they do exist; with a past employer mid term cancellation charges were massively more for people in their 1st year compared to subsequent.

what benefits?

I was with AA for seven years - each year they claimed to get me the best quote but I just went along until I got wise this year!!

I went on a few compare sites and got quotes almost £150 cheaper with AA - I phoned them and asked them to explain why - they kept going off to discuss etc but in the end they had to agree and I asked them why they treated their existing customers so unfairly

One point I noted and would like to share is the fact that when you insure with a broker such as the AA, they never take into consideration the yearly decrease in value of your vehicle so if you stay with the same broker/insurance company they use the same info each year to renew your policy even though they know your car decreases in value

I am still with the AA and paying £150 less this year and I negotiated free AA cover because I complained and moaned about it being unfair and underhand!!!

Astaroth

They use the same info because it is the same car?!?! Virtually all insurers use "market value" for the vehicle which is not calculated until an accident occurs and a total loss is a possibility.

Most insurers rate on the vehicle grouping and age and not any concept of vehicle value. You have to remember what make claims expensive for insurers is on the £1,000 to fix the policyholders car but the £15,000 for the third party's repairs, hire car, injury claim, solicitors fees etc.

The only place value comes in is for if you can have TPO/ TPFT or have to have comprehensive and/or if you need a tracker.

Hackneygirl

Astaroth wrote: »

They use the same info because it is the same car?!?! Virtually all insurers use "market value" for the vehicle which is not calculated until an accident occurs and a total loss is a possibility.

Most insurers rate on the vehicle grouping and age and not any concept of vehicle value. You have to remember what make claims expensive for insurers is on the £1,000 to fix the policyholders car but the £15,000 for the third party's repairs, hire car, injury claim, solicitors fees etc.

The only place value comes in is for if you can have TPO/ TPFT or have to have comprehensive and/or if you need a tracker.

I don't think you understood my post so to put it simply, the reason why the same insurance policy with the same broker and same insurance company came out £150 cheaper is due to the fact that I changed the value of the car from £4,000 to £1,000 - what I am saying here is the insurance companies will still charge you for the initial value of your car even if it is years ago - they do not automatically decrease the value of your car or "market value" - the onus is on you to bring it to their attention and then your premium will decrease

You are always asked the value of your car when filling in the information for a new quote!!!!

The guy from the AA explained to me why the premium was reduced by £150 when I applied for a new quote and he explained the above reason!!!!! it happens and is a good piece of advice for people who keep renewing with the same companies but wonder why their premium is no cheaper

jenny_f

similar thing, just got an automatic renewal letter from tesco (didn't think i was on automatic renewal) but this was my first year with my own car and the price has doubled?!?!

I'm gonna price hunt now but not sure what to do,

can you cancel with automatic renewal???

Quentin

You can but be careful - unless you really want to!

What you should do is instruct them not to renew and to let the policy lapse when it expires. This prevents them taking you at your word if you say "cancel", and imposing cancellation charges.

jenny_f

Quentin - was this aimed at me or the original poster?

owitemisermusa

Jenny, what I did was tell them I did not want to renew and for them to let the policy lapse on the expiry date. I also asked for a letter to confirm this.
HTH.