New Car Old Policy Due for Renewal

mikey4020

I'm buying a new car which I should be picking up next week. The insurance policy on my current car policy is due for renewal in 14 days! Given the renewal price and after shopping about I intend to move insurers!

Wondering the best way to do this? Should I just let the old policy on the old car run it's course and then cancel given that I have to pay an admin fee to change the vehicle, which doesn't seem worth it given how long is left on the policy and start a new policy for the new vehicle?

I have 5 years NCB, will I be able to start a new policy with that NCB if there is still time left on the old policy? I don't want to cancel it a few days early if it means loosing one of the years NCB! Hope I've explained that relatively clearly?

AdrianC

Can't see any insurer having an issue with giving you a very short-term introductory bonus equal to the amount you'll transfer on in a couple of weeks, tbh. Or just ask your current insurer to confirm in writing the NCB due at expiry - they've probably already done this on your renewal quote?

And, yep, I'd just let the old policy expire.

Iceweasel

I would be delaying the collection of the new car until the start date with your new insurer, if necessary.

Insuring your new car with your existing insurer is going to cost and give unwanted hassle.

Much simpler and cheaper to just let the existing insurance go it's full term, and tell them you are not renewing. Check with them right away as they may reduce the renewal premium if they know you are seriously contemplating changing insurers.

You should already have a renewal offer/quote or whatever they call renewals these days from your existing insurer and even if you don't, you can set things up with the new car with anyone you like.

They don't need to see the renewal/proof right away - if at all.

mikey4020

I've had my renewal through already and this confirms my 5 years no claims bonus. So I think I will just start a new policy for the new car with my 5 years no claims.

DUTR

mikey4020 wrote: »

I'm buying a new car which I should be picking up next week. The insurance policy on my current car policy is due for renewal in 14 days! Given the renewal price and after shopping about I intend to move insurers!

Wondering the best way to do this? Should I just let the old policy on the old car run it's course and then cancel given that I have to pay an admin fee to change the vehicle, which doesn't seem worth it given how long is left on the policy and start a new policy for the new vehicle?

I have 5 years NCB, will I be able to start a new policy with that NCB if there is still time left on the old policy? I don't want to cancel it a few days early if it means loosing one of the years NCB! Hope I've explained that relatively clearly?

You have 4 years NCB until the renewal date.

mikey4020 wrote: »

I've had my renewal through already and this confirms my 5 years no claims bonus. So I think I will just start a new policy for the new car with my 5 years no claims.

The 5yrs is effective from the renewal date, so either delay collecting the next car or pay the admin fee short as it is, I was in a similar predicament although it was 3 weeks in my case, delaying for 3 weeks to save £25 wasn't worth it for me, 1 week though I may have done (that said I already had to pay an admin fee weeks before for the registration plate change).
Just total up the cost to change, you have to draw a line on how frugal you want to be.

Iceweasel

mikey4020 wrote: »

I've had my renewal through already and this confirms my 5 years no claims bonus. So I think I will just start a new policy for the new car with my 5 years no claims.

If you mean that you're going to start the new policy to take effect the day after your existing policy finishes that perfect.

Don't try to have them overlapping.

Stooby2

Be very careful about letting a policy just expire if you've sold the car on / part exchanged it. There was a very good letter & reply in the October 2013 issue (page 38) of Ride magazine a where a guy had sold his motorbike just let the insurance run as he wanted to get the full year's no claims.

However, the new owner rode it uninsured and crashed into another vehicle. The third party's insurer found the motorbike was currently insured and claimed on the policy.

The guy that sold the bike then got a nasty letter from his insurance company, stating they will be asking him for the cost of claim.

The reply was written by Andrew Dalton who is a solicitor and regularly helps readers with legal issues. He stated that the insurers were legally allowed to do this and things were soon to become very expensive for the guy who sold the bike.

So either wait and buy the car when your insurance elapses, or cancel the old policy immediately you selll the old car (if you do).

mikey4020

It seems after running a few price comparisons that there is not a significant difference in the premium between declaring four years NCB and five. In fact the difference is still less than the admin fee and the quotes are far lower than my renewal.
Is it acceptable therefore to cancel the old policy when I take delivery of the new car next week and start a new policy declaring only four years no claims bonus?

Iceweasel

I wouldn't do that under any circumstances.

Throwing away a year might be very short-sighted.

The difference right now may not be so much - but it might be in the future.

Also bear in mind in the unfortunate event of you having a claim at some point in the future you'll go back 2 levels (unless you have protected NCB) which may well be a big difference.

We are only talking about delaying a week or so are we not?

I still think telling your present company that you are changing car and have better quotes elsewhere will bring results when you discuss this in person with them.

Usually they have some discretion to at least match what you have been quoted in an attempt to keep your business.

I am not advocating that allegiance to any company is always good idea, but in your case it will not be cost effective to change insurer and car and lose a years NCB.

Explain the situation to them and see their response - you may be surprised.

Quentin

mikey4020 wrote: »

It seems after running a few price comparisons that there is not a significant difference in the premium between declaring four years NCB and five. In fact the difference is still less than the admin fee and the quotes are far lower than my renewal.
Is it acceptable therefore to cancel the old policy when I take delivery of the new car next week and start a new policy declaring only four years no claims bonus?

Yes .

spacey2012

Just watch for "Auto-renewal" clauses or you may find the old policy renews itself.