Can I run two policies to save money for a few weeks?

DougFlo

My daughter has recently passed her driving test (hurrah!) We spoke to our current insurers (Zurich) and asked them to quote to add her onto my wife's policy as a named driver on my wife's car. They quoted us over £2500 extra, which would have pushed the insurance over £3000.

The Zurich policy is due to expire in a few weeks and, although was paid in monthly installments, is fully paid up since the last DD went out of our account last week.

We have found a much better policy, with a good firm, which gives us everything we need for less than £1000. We would prefer our daughter to be on the policy straight away rather than waiting a few more weeks. I spoke to Zurich and they, of course, quoted their £50 cancellation charge, which I understand is part of their T&C's, so I can't get round it. The young lad on the Zurich line was very good at quoting the company policy, but when I asked him what Zurich's policy or view of us taking up the new policy straight away and in effect having 2 policies running on the car for a few weeks. He had no idea and was not able to advise me, he thought 'it might not be allowed.' Strange how he knew the cancellation charge policy inside out, but nothing else.

So does anybody know is this is allowed? Is it a legal issue?

Any advice or comments would be greatly appreciated.

adamc260

It's dual insurance which is a no no really

scheming_gypsy

was their quote for a new policy or £2500 for a few weeks? if it was for a few weeks ask them how much it'll be to add her till the end of the policy. It shouldn't be much for a couple of weeks.

oscarward

Out of curiosity.

why is it a no no? if daughter has an accident claim on new policy, if wife has a crash claim on old or new.

So long as you don't claim on both what's the issue?

DougFlo

Thanks for your thoughts so far

The additional £2500 was for a full year on top of the £500 we were already quoted for the original policy. I haven't asked Zurich how much it would be to add my daughter for the 4 weeks before their policy expires, but I had just kind of assumed it would be about 1/12th of the £2500, so around £200 extra ( I know you should never assume), but in that case it would actually be cheaper to pay the £50 cancellation fee and start the new insurance policy anyway.

I have searched the dual insurance topic and I cannot find a definitive answer. What about if I wrote to Zurich to tell them the car will have two policies until the Zurich policy expires, but I waive my 'right' to claim on their policy? Just a thought.

(I know this is an aside and it is in the T&C's, but I couldn't help asking the young lad on the phone that if I had purchased a sandwich at M&S, but not eaten the crusts, would M&S try and charge me a 'crust' fee....he didn't really understand the comparison.)

vaio

can't see any problem with running two policies but I can see one possible problem with NCB in that you can't use it on two policies and until you get proof of NCB from your current insurer when the policy ends then you might struggle to use it on the new policy

DougFlo

vaio wrote: »

can't see any problem with running two policies but I can see one possible problem with NCB in that you can't use it on two policies and until you get proof of NCB from your current insurer when the policy ends then you might struggle to use it on the new policy

Interesting point. The new insurance company have asked for proof of the NCD in the form of the insurance renewal, but I can't see anywhere that says the new insurance can only start when the old one expires. I may well ring them to ask on this point. It is so complicated.

bouncydog1

If you take out a new policy prior to the old one expiring you will not get any NCB on the new policy until you can provide evidence that the old one has been cancelled.

Effectively insurers will ask for 100% premium, so if it is around £1000 with full NCB then it will likely be nearer £3k without, which is what they will ask for.

Quentin

One other point to be aware of - should you decide to cancel now then you won't get any NCD added for the current year, though you would have your NCD (as at the start of your current policy year - assuming no claims this year) to use immediately on your new policy.

adamc260

Both policies pay their portion of the claim but it gets complicated as they have to work out who has the stronger interest and could affect you twice

DougFlo

I think I will just sit tight and 'put up' with Zurich until the end of their policy. Daughter will just have to wait. Too many complications otherwise.

Thanks for your comments