Change car insurance company early, lose no claims?

matttye

Hello

I currently have two years no claims and I've had my current car insurance policy for five months.

I pay on a monthly basis, although I will consider paying off the rest of my premium in full if this is allowed and saves me any money (I've asked my insurer about this but am yet to hear back from them.)

I did a search for quotes on Money Supermarket and I could be paying £10 less every month if I went with a different insurer (or even with my current insurer if I cancelled and then renewed). I also turn 25 at the end of May so insurance may be cheaper still if I do a search after that date.

My question is, does everyone think it would be worth changing early for the better price or should I stick it out and get my third year of no claims? I'm not sure if the savings I would make for the rest of the year would be greater than if I stuck it out until October when I've got three years no claims.

Thanks for any advice in advance

McKneff

You maybe pay on a monthly basis but it doesnt work like that Im afraid. You take a full years cover out and they allow you to pay it off in installments.

You need to check your terms and conditions about cancellation and how much they will charge you to do this. There will definitely be a cancellation charge (often £50) and also an administration charge so you have to do the maths as to whether its worth it.
A cancellation charge and an admin charge is normal and you woud have signed up to agree to this when you first took the policy out.

hugoshavez

Depends if £10 a month represents 10% or 75% of the cost of your insurance, but in broad terms I'd suggest you'd usually be better off waiting and changing at renewal.

rs65

matttye wrote: »

or should I stick it out and get my third year of no claims? I'm not sure if the savings I would make for the rest of the year would be greater than if I stuck it out until October when I've got three years no claims.

And the following year when it would have been 4 etc...

matttye

McKneff wrote: »

You maybe pay on a monthly basis but it doesnt work like that Im afraid. You take a full years cover out and they allow you to pay it off in installments.

You need to check your terms and conditions about cancellation and how much they will charge you to do this. There will definitely be a cancellation charge (often £50) and also an administration charge so you have to do the maths as to whether its worth it.
A cancellation charge and an admin charge is normal and you woud have signed up to agree to this when you first took the policy out.

You are correct, there's a £55 cancellation fee. Decision made - I won't bother!

Thanks

hugoshavez wrote: »

Depends if £10 a month represents 10% or 1% of the cost of your insurance, but in broad terms I'd suggest you'd usually be better off waiting and changing at renewal.

22.22%

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Thanks all!