Does anyone know which insurance companies don't impose big penalties if you cancel?

JennyP

For reasons outlined in another thread, I need to insure a second car for a couple of weeks. Not sure how long. Apparently it'd be cheaper to insure it with normal insurance then apply for a refund when it's sold.

Does anyone know which insurance companies will refund a reasonable proportion of the premium when I cancel in a few weeks? I'm with the RAC currently and they won't refund any, despite the fact that I've got 6 months on my policy!

Hammyman

If you pay monthly then the reason they don't refund is because you've actually taken out a loan to pay for the insurance with most companies.

JennyP

I don't. I pay upfront!

victor2

From Tesco's policy....

You have 14 days from when you receive your policy documents or enter into this contract, whichever is later, to notify Tesco Bank if you want to cancel your policy. This is known as the cooling-off period. You can cancel by phoning Tesco Bank and cancellation can take effect immediately or from a later date, although it cannot be backdated to any earlier date. You must then return your Certificate of Motor Insurance to Tesco Bank, as it is an offence under the Road Traffic Act not to do so. If cover has not yet started, we will refund any premium paid in full. If cover has started, we will refund your premium for the time that was left on your policy as long as you have not made a claim.

So it'll cost you nothing if you take out the policy at the last minute and are able to sell the car within 14 days.:)

JennyP

And that sounds like, if it took longer, they'd refund it in proportion with the amount of time left! I wonder why mine are being such awkward &^*%s?

victor2

Don't know, unless you've made a claim. RAC's t&cs say:

If you cancel after this time, we will charge a cancellation fee of £35. We may also charge a percentage of the total cost of cover, depending on when you cancel.

They also have a 14 day cooling off period. Of course, the percentage charge could conveniently cover the balance!

JennyP

Perhaps I should ring them again and clarify. It seems ridiculous.
I'm right in thinking that if I get a second policy with another insurer on a second car, I can't get my no claims bonus again can I? I mean, I can't use it on two vehicles, only on one?

victor2

That's right. Could be worth asking your present insurer if they'll do a deal for a second car. Or is that still the RAC?:(

JennyP

On RAC's website it says this:
Your question

Can I cancel my car insurance policy?
Your answer

If you choose to cancel your policy within 14 days of taking it out, you can cancel and receive a full refund minus the time you have been covered, with no extra fees to pay as long as you have not made a claim in this time. If you cancel after 14 days we will charge a £35 cancellation fee plus apply short-term rates to the time you've been covered, before refunding the difference.


So I suppose they are "applying short-term rates" to my policy and deciding not to give me money back that way.


The cheapest way might be to insure it in my partner's name with me as a named driver. He is carless at the moment so his no-claims is sitting there doing nothing. I've had quotes for him on the new car that are LOADS cheaper than for me to insure it as a second car. When I sell my old car, I could then just swap the new car into my name.


He says the disadvantage is that my new car would be worth less as it would have one more owner on its records. I don't think that matters as I'm intending to keep this car for several years and another owner will surely be neither here nor there by then. Assuming I like it as much as I think I will!

JennyP

That's still the RAC! They come up cheapest to insure the car in Rob's name too .... it's tricky.
I am wishing I had part-ex'd mine now but the deals they were offering were awful.
I was a bit impulsive buying this one though!

OTher thing is....if we don't get the price we want on my car, my partner Rob is talking about keeping it till the summer and doing a bit of work on it to tidy it up. So we'd need it insured then.

The insurance company said that you can't be the main driver on a car you don't own. Is that true? Or that, if you were, it was your no claims that got used rather than the owners? They said it was to stop a grandad insuring his 18 year old grandson's vehicle at grandad rates rather than at 18 year old rates.....

victor2

JennyP wrote: »

He says the disadvantage is that my new car would be worth less as it would have one more owner on its records. I don't think that matters as I'm intending to keep this car for several years and another owner will surely be neither here nor there by then. Assuming I like it as much as I think I will!

He doesn't have to be the registered keeper to be insured on it. So it can just be registered to you, so long as it is insured to somebody and you are also included.

Edit:
I'm insured for a car registered to my OH, you just make that clear to the insurance company and it cost me nothing extra to do that.