New car new insurance company

james2012_2

I have bought a new car and my present insurance company would not insure it unless they put the premium up massively from what I was paying for my old car.

So I went online and found insurance for £200 less than my present company so I insured my new car with them.

They also gave me my NCB of 20 odd years. They must have got in touch with my old company.

My old insurance still has 5 months to run but the broker want to charge me £75 to cancel it because they want their cashback back.

Because of discounts and cashback I only paid £60 for the insurance.

So if I cancel the insurance I will actually owe them money:eek:.

What will happen if I just never tell them that I am part exchanging my old car and leave the insurance running?

ceh209

Then you won't be able to use your NCD on the new policy, I suspect. It's one or the other I think?

bouncydog1

You can only use the bonus on one vehicle so unless you cancel your existing policy, your existing insurers will not provide you with the evidence = increased premium on the new vehicle.

Do you still have the old car or have you sold it? If you have sold it then you must cancel the insurance as you no longer have insurable interest in vehicle.

Secondly, if you leave the insurance in place and a new driver drives without insurance and is involved in an accident, guess where the injured parties will come? That's right - to the insurer of the vehicle as recorded on the MIB database. And guess who will have to answer a lot of questions as to why they are insuring a vehicle they no longer own?

Finally, as you only paid £60 for your insurance, you must have realised that there were incentives for you getting it that cheap. why should the broker be out of pocket because you decided that you wanted to change your car? They would have had to disclose that they were receiving commission on your business and within the terms and conditions there will be information relating to you have to repay a portion of the commission if the policy does not run for the whole year. They will be charged this by the insurer.

You don't get anything for nothing nowadays!

james2012_2

The old car is basically getting scrapped. The dealer is paying me the scrap value.

Its last journey will be to the dealer where I am buying my new car.

I don't think it will be on the road as it needs quite a bit of money spent on it to pass it's MOT. It would fail its MOT on corrosion of the bodywork alone and the tyres are barely legal. The brakes disks are grooved and it needs taxed.

On my new policy it says

No Claim Discount: 60%

Previous insurer: Previous insurer

You are not required to submit written proof of your No Claim Discount

so I gather my present insurer got all the details from my current insurer.

Finally, as you only paid £60 for your insurance, you must have realised that there were incentives for you getting it that cheap.

Of course I did, if they had given me an incentive to stay I would have stayed.

They shouldn't have wanted to charge £200 more than my new insurance after I told them what I had been quoted. Oh we can't beat that, I bet they will beat it next year and if they do I will go back to them.

2 brokers one £200 more than the other. Well they ain't getting no more money from me

It would make a good story for the tabloids,

OAP cancels insurance but they still want money.

mikey72

james2012 wrote: »

..............
You are not required to submit written proof of your No Claim Discount

so I gather my present insurer got all the details from my current insurer.




........

Not some one like Direct Line was it?
Give them a couple of weeks, when you're out of the cooling off period they'll change their mind.

james2012_2

Not some one like Direct Line was it?

No, one supposedly for older people who are going GAGA

If I have problems with them I will try someone else when my year is up.

mikey72

There's been a couple of threads on here about their renewal prices recently, for the amount they charge, keep your eye on them.

dacouch

The cancellation fee / clawback of discount sounds like Swintons

james2012_2

The cancellation fee / clawback of discount sounds like Swintons

Correct

..........

mikey72

It doesn't seem that bad a charge compared to some.
If the insurance was £100, (assuming Swintons £40 cashback)
so 5 months refund of premium is £40 pro rata, which wipes out the cashback, then out the £75, most other insurers would be charging a £50 cancellation fee, so that's just £25 astray.

I would have normally advised a complaint, and then refer to the FOS, but usually that's because the cancellation charge from other posters has been £100's or even £1000's over the top.