Cancelling car insure before 12 months is up

coconutisland

Hi,
i only need car insurance for four months (going abroad) however it looks like i have to sign up for a years worth yikes if i do it by monthly instalments and then cancel after four months will they be coming after me for the rest of the money or am i within my rights to do that.
any advise for me
thanks

maginot

No, you are liable for the full 12 months. Each insurer is different but they may only charge you for 7 /8 months if you cancel after 4 months, plus an admin fee.

There are insurers that you get for a month at a time, but these tend to be more expensive for a couple of months of cover than paying for a full years premium.

Chrisblue1962

You can sign up for short term insurance policies - just google the topic or right a few companies and advise them precisely what cover you need. I will be surprised if you found that no-one wanted to insure you for four months.

dunstonh

if i do it by monthly instalments and then cancel after four months will they be coming after me for the rest of the money or am i within my rights to do that.

Annual car insurance is for the year. If you pay monthly, you are effectively taking out a loan and spreading the payments. If you stop paying mid term, you will suffer a penalty charge (typically upto £50 and a relatively pro-rata calculation on the premium).

You may want to consider short term insurance. It is expensive relative to annual car insurance but cheaper for short term periods.

vaio

you are effectively looking for temp insurance that only costs £12.50 a month more than the annual policy.

I'd be very surprised if such a thing exists and suspect your best bet is going to be an ordinary annual policy via the cheap channels and cancel after 4 months. Watch out for credit charges if you decide to pay monthy

forgotmyname

If your not coming back for 6 years and dont mind the hit on your credit file then you could risk it.

Insurance will be dearer though when they ask have you EVER had a policy cancelled or special terms etc.. You must answer yes to that forever is they ask (ever). You might lose your no claims also.

Is it worth the risk?