Car insurance for just a few months

corbyboy

I am getting a lease car from work soon (ie any time in the next six months) but I have to insure my current car until it arrives.

If I take out a year long policy and cancel it after, say, 3-4 months will it cost me any more than the cancellation fee?

I will have to pay monthly if this makes any difference. I just want to make sure that I am not going to be stung for any additional fees when I have to cancel.

huckster

You are going to have to get quotes for annual cover, together will details of their cancellation charges. Insurers will charge what are in effect short term rates.

Therefore you might be better off phoning companies explaining the position and asking for the info. It does vary.

It may also be worth phoning a local broker and they will advise you what the best option is based on your details.

Quentin

If you cancel a 12 month policy after 3/4 months you won't get away with just the cancellation fee. They do make a premium charge (ie if paying monthly, then the instalments you will have paid won't cover the full premium they will charge for the short term you have been covered), plus there may be an early settlement charge associated with the instalment plan.

Before taking out a policy check to see how much it will cost to terminate early as even with these costs an annual policy cancelled after 3/4 months may still work out cheaper than taking monthly short term insurance.

corbyboy

Quentin wrote: »

If you cancel a 12 month policy after 3/4 months you won't get away with just the cancellation fee. They do make a premium charge (ie if paying monthly, then the instalments you will have paid won't cover the full premium they will charge for the short term you have been covered), plus there may be an early settlement charge associated with the instalment plan.

Before taking out a policy check to see how much it will cost to terminate early as even with these costs an annual policy cancelled after 3/4 months may still work out cheaper than taking monthly short term insurance.

I was afraid this would be the case. So how would you suggest proceeding from here? I need cover anywhere from 2 months up to 6 months.

Quentin

As already posted, you are going to have to accept that (say) cover for 4 months will be proportionately higher than 33% of a 12 month policy.

So find out the cost of cancelling a 12 month policy so you are prepared (if you can afford it, paying up front for a 12 month policy then getting a partial refund when you cancel will work out cheaper than taking a 12 month policy and paying for it via an instalment plan.

And compare the overall cost of having a 12 moth policy which you cancel against the cost of taking out short term insurance (where you have no charges to pay at the end of the period) just to be sure you are going the right route.

Ask your employer to be more definite on the arrangement so you can plan accordingly.

corbyboy

Thanks for the advice.

I have had a look round and Endsleigh seem to refund on a pro-rata basis plus a £50 cancellation fee. I think this is where I will be going.

whatmichaelsays

Just remember that if you make a claim within those four months, you won't be able to cancel an annual policy.

I'd recommend talking to a broker about a specific short-term insurance policy.

Quentin

corbyboy wrote: »

I have had a look round and Endsleigh seem to refund on a pro-rata basis plus a £50 cancellation fee. I think this is where I will be going.

Check with them before you buy!

They charged a fair bit to cancel someone here:

https://forums.moneysavingexpert.com/discussion/2143563