error in money saving tip email 15th Feb

dunstonh

The car insurance article in the moneysaving email contains an issue that is already being debated in the insurance section and a number of us feel is bad advice. Plus, we have had someone already ask questions on this in the insurance section. What about those that dont ask questions and then find themselves worse off?

http://www.moneysavingexpert.com/latesttip/

It is in relation to point 1:
1. Don't wait until renewal to save. Unless you've claimed, you can usually ditch policies free, or at worst a £20 - £50 fee (if so, check savings overcome that).


That advice is wrong for the majority of people. Most insurers not only have a cancellation charge but the premium that is due is not exactly pro rata. e.g. someone who has got half way through the year may have to pay 60% of the premium if they cancel (getting only a 40% refund) and a cancellation charge.

Plus, if they have bought a number of addons, these are often non-refundable (e.g. courtesy car, legal expenses, some breakdown cover). Add, if you are building your NCD up then you will not get an added year (6 months with one provider and 6 months with another does not give you one year of NCD).

Brokers and sellers were told many years ago not to market mid-term switching as for the majority of people it would not be the best thing to do. Yet this article is recommending just that.

It would have been better to state that you should check but come with a warning that for most people they will not be better off. Indeed, given the odds, it was probably better not to suggest it at all. It should certainly not state "you can usually ditch policies free, or at worst a £20 - £50 fee (if so, check savings overcome that)." as that is not correct.