Car Insurance - Changing car, told us to cancel the policy and start a new one

BaileyB

Hi,

Looking for some advice.

We have a policy with Budget Insurance and my Wife had an accident in Jan time. After few months this was deemed my Wife's fault (her policy). She protected her no claims so did not effect us that badly but did lose excess etc and thought they would write our car off (minor damage but over 70% of value) but after 3-4 weeks decided they would repair it. (value £1200 repair was £900 not inc hire car etc) No worries would have preferred a write off as was changing the car.

So move on to this week and we go and buy a new car and part ex the previous car. My wife phoned insurance today to put the new car on file as we change it over when we bought it and 'sold' the part ex. So can ring at the garage and change them over.

But she was told as the 3rd party has not agreed to this they had a really old bike so it would have been a write off, worth around £100-£200. But personal injury still ongoing.

She was told she would have to cancel her current policy (ends Sept) and this would cost £88 and then be charged a £30 admin fee and then £55 a month for the car and then £54 a month thereafter for a brand new policy starting tomorrow.

Now ok the admin fee is a rip off but we accept that, but can they tell her to cancel the policy and then take out a new one? Would that not effect 'have you had insurance canceled' question when you take new insurance out?

They closed when got home so will be ringing tomorrow but looked on their site could not see anything about if a claim is made you must cancel the policy, and start a new one. The accident happened 14 weeks ago so apart from the PI claim (which can take up to 2 years to settle) it should be all sorted.

We priced up the new car and can get it (with the claim and 5 years no claims protected) for £35p/m so £20 saving. But if you cancel the policy when a claim has been made you got to pay the full years up, so was going to go till Sept and cancel and go elsewhere, but if forcing us to have a new policy are stuffed with this payments for another year.

Any advice would be great, is this a normal thing to happen?

This is first accident is 7 years and never changed car when claim has been made in that policy year before so all new to this.

Alter_ego

Her cancelling would not affect new policy. Insurer cancelling would.
Maybe the new car is not one they want to insure.
Maybe the wife is no longer someone they want to insure.

If you have to pay the full year anyway why cancel?

Quentin

Next time you are buying a new car check with your insurer they are happy to cover it on your policy.


Otherwise you face this problem.


You don't have to take a policy with your current insurer and are free to look round for the best deal.

BaileyB

Yes, looking at the figures now seems to be that the £88 is the 3 months left (june, july & aug)

We bought another car few months back and that was a simple swap (my car) we of course did not take it account the claim and the 3rd party insurance not insuring the car.

So if we cancel the policy and pay it in full this will not effect the future insurance policy's.

What has thrown us is the £30 admin fee for a new policy.