Canceling Car Insurance Policy - Charge

Helen_J_3

Hi guys,

Just wondered which is the best way to go about this should it become an issue.

Bascially in August I have to move away from home for 10 months to do a solicitor's course which isn't provided near where I live. It's going to mean cutting my outgoings but I'm hopefully going to keep my car if I can afford to.

The problem I have is this. My insurance renewal (Churchill) is in April. So I'm going to renew (or get new policy, depending on which is cheaper!) at that time so I can keep the car until at least August. Depending on money and whether I can find a job in between leaving uni and going on the course I'll keep the car and policy as it is.

However what happens if I need to cancel come August because I can't afford to run the car? Is it just a case of paying the cancellations charge and getting a refund? I'm worried that I'll not be able to get anything back in August should I want to cancel and I'll have paid out £600-£700 for 3/4 month's insurance.

Thanks for any help

Also forgot to add I usually pay insurance out in lump sum whether that would make a difference?

forgotmyname

You can get short term policies but it may cost you as much for 4 months than it does for a full year.

One to look at when shopping around for insurance, I would imagine prices vary a lot between different
companies cancellation charges. Always ask.

McKneff

Cancellation charges are anything from £25 upwards and often there is an admin charge too.

Try the short term ones first.

dunstonh

When you do your research at renewal, look at the insurers with favourable cancellation terms.

Helen_J_3

Thanks everyone I'll keep an eye out for cancellation charges. The reason I don't want a short term policy is that there's a good chance I'll be keeping the car and therefore will need a full year anyway.

Flyboy152

If you cancel your insurance on the car, you will need to declare to the DVLA that it is no longer on the road. That means that it MUST be stored somewhere not on the public road. You must complete the SORN (Statutory Off Road Notification) form V890, you can get these from most post offices or online at www.dft.gov.uk/dvla/~/media/pdf/forms/V890.ashx . This will be a legal requirement from April (I think) this year.

You will also get any unused whole month portion of your road fund licnece refunded.

vaio

I’d run multiple quotes and pick your next insurer based on the combination of prices for where you live now and where you will be living later (I’m guessing Guilford or York?)

If you renew in April and cancel in September you can be pretty sure you’ll get next to nothing back once short period cover, admin and cancellation charges have been included

Helen_J_3

vaio wrote: »

I’d run multiple quotes and pick your next insurer based on the combination of prices for where you live now and where you will be living later (I’m guessing Guilford or York?)

If you renew in April and cancel in September you can be pretty sure you’ll get next to nothing back once short period cover, admin and cancellation charges have been included

Manchester or York are the most likely, I can't afford to move near London

When you say short period cover is that if a renew a year policy from April then cancel it in September or is that if I buy a specific short policy from April?

Flyboy152

Where will you be leaving the car, when you cancel the insurance?

Helen_J_3

Flyboy152 wrote: »

Where will you be leaving the car, when you cancel the insurance?

Either in my Mum's garage or a yard which my boyfriend's uncle owns!

vaio

Helen_J wrote: »

Manchester or York are the most likely, I can't afford to move near London

When you say short period cover is that if a renew a year policy from April then cancel it in September or is that if I buy a specific short policy from April?

I was talking about cancelling an annual policy after six months and don't think you'd get much (if any) money refunded.

Wouldn't have thought short term insurance would be any better in terms of overall cost (and considerably more expensive if you do decide not to lay the car up)