Car Insurace Problem

johnfield1892

Hello, I was wondering if you can help me.

I currently own a car (hence the title). I am looking to change this in the near future, as a deal has come up that I won't get if I wait.

My problem lies in the fact that, my insurance policy runs June to June. As I have three months left of this policy, I rang my insurers to see if I could make ammendments and pay any additional costs for the remainder of the term. They wont insure me though on the prospective new car, so I don't know where I stand.

From reading these forums, I believe that I can't just take out a new policy on the second car and let the first one run its course, as I can't insure a car I do not own. This leaves me with the only option I see, which is to cancel the insurance and take out a new policy for the second car. This will, I'm right in thinking, wipe out the 9 months towards a new years NCB will it not? And when you're my age (21) that kind of thing can make a big difference.

Interestingly, I can take out a new policy with the same company for the new car no problem, but they point blank refuse to change the policy. The man on the phone couldn't understand why this was the case, and put me on hold to check with his supervisor, but came back and said he had been told there is no way they can change.

I'm very confused! Thanks for any replies in advance

keith1950

This is probably because you insured through an intermediary and the insurer who they used are refusing to insure you but the intermediary can obtain insurance for you with another insurer hence it has to be a new policy.

johnfield1892

I'm with Admiral (are they an intermediary?) and insured directly with them last year and rang them direct to make changes. I did the same thing last year with two different cars (again with Admiral) and had no problems, granted this one is in a higher insurance group.

keith1950

Hi, only guessing, but while they might not exactly be classed as an agent such as BISL or Hastings the policies are underwritten by other insurers. Last time you changed the risk was probably acceptable to the existing underwriter however this time it would appear the existing underwriter is not willing to take the risk and Admiral are quoting via another underwriter.!!!

iamana1ias

keith1950 wrote: »

Hi, only guessing, but while they might not exactly be classed as an agent such as BISL or Hastings the policies are underwritten by other insurers. Last time you changed the risk was probably acceptable to the existing underwriter however this time it would appear the existing underwriter is not willing to take the risk and Admiral are quoting via another underwriter.!!!

Admiral are a direct car insurance provider - not a broker.

keith1950

But if you read they policies, they are underwritten by different insurers and their 'about us' on the website cleary states the same.

raskazz

keith1950 wrote: »

But if you read they policies, they are underwritten by different insurers and their 'about us' on the website cleary states the same.

Admiral (as far as private cars are concerned) operate on the basis of coninsurance. AFAIK this spilts their whole book between Admiral and its coinsurers rather than each coinsurer taking on different risk profiles. So it is a bit odd that they can offer a new policy on that vehicle but not offer a mid-term adjustment to accommodate it. The only reason that I can think of which would prevent it is if they segment their business into different schemes, and the OP's policy cannot be moved to another scheme mid-term due to systems constraints.

johnfield1892

While I see your point raskazz, they were more than happy to change mid term last year but are now unwilling to do so with different cars involved which is why I'm confused. When I asked why and explained this, they said they would need the online reference number when I got the online quote to cross reference the policies.

If this is the case, is there any way around the issue of losing the part years NCB or do I just grin and bear it?

alistair.long

You had 2 questions,
Firstly you can let your existing policy lapse and you will earn the no claims, if you have sold the car I would be carefull. While the policy is running out you can get another temp policy which stops in june, you will start that with 0 no claims. Then after you get your full years bonus you can add that to a new policy, then you will have a new policy with a extra policy.
Alternatively you can get a second policy and let it run the whole year with 0 no claims, and let your currant run out.
Then get a policy and show both no claims which can be added, comulative no claims.

And also I had a high performance car and tried to add it on my policy. I did it the year before and it was fine this year it was not allowed.
I enquired and was put on hold, it turned out my wife was hi risk for them and therefore had to remove her to get my car running.

johnfield1892

Where do I stand legally with regards to leaving a policy to lapse having sold the car? As I'm going to part ex it so I imagine it will sell before the policy runs out in June. I get the feeling that losing the years no claims that I've built up so far this year is going to be the only way, as temp insurance isn't really an option as I looked into it, and it costs about 2/3 of the full cost of a premium. Its frustrating but I can't see any other way. After all, money saving is the aim of the game

Parents shouldn't be an issue as my dad has an M3 and my mum has a TTRS, so they are already insured on expensive cars, both with no claims or speeding convictions and they reduce the price when I quote online, but I may ring them back and see if this will make any difference.

Sorry for the questions again, and I know its been discussed at length before but I take it if I do end up cancelling this policy, I will more than likely pay a cancellation fee of around £45 and receive no pro-rata refund, and probably incur a charge of maybe a couple of hundred pounds? This is why leaving the policy to lapse also seems the best option...

Thanks for all replies so far

bouncydog1

One of the underlying principles of insurance is insurable interest, which means that you must have a legal interest in the subject matter of the insurance - in this case the car. If you sell the car, you no longer have insurable interest so cannot take out a policy on the vehicle.

There is also the worry that if you continue the insurance and the purchaser for whatever reason decides to drive uninsured and there is an accident involving a third party, it is your policy that will have to respond to the third party element of the claim. You would then possibly lose your bonus and have a lot of explaining to do - you could also be accused of fraud as you would be attempting to benefit from your action of continuing insurance on a vehicle you no longer own, to get the balance of no claims bonus to make a financial saving on your insurance premium.

I suspect (and no expert here) that Admiral have several arrangements with the insurance market. Some of those arrangements will enable them to write high performance vehicles and some won't. Your existing insurance is probably in a scheme which will not allow the risk to be written, which is why they cannot offer cover on your existing policy. If you cancel that policy (which you would have to do, as you no longer have insurable interest) then you will be subject to short period rates (which will probably be in the range of 100% of the year's premium) and will also probably have to pay a cancellation charge. You will also have lost 9 months of this year's bonus.

Quite honestly, I would keep your existing car to the end of the policy earning the year's bonus and then buy another. You say that you will not be able to have the vehicle you are looking at now but you might find there are other vehicles around in 3 months. Have you explained to the seller that you cannot change your insurance for 3 months - what have they said? Sounds like a typical sales pitch of "must buy now if you want it" - have they go somebody else to sell it to?

Unless you can afford to bear the additional insurance costs (all of them) without thinking about them, then the deal will not necessarilly be as good as you think.