Insurance Question

Tinaroo

Morning,

Next week my mum is going away. I have asked if I could use her car for the week however insurance is proving difficult.

She has a Range Rover Evoque Overfinch and for me to be insured it is £1840 a year (I am 22). The insurance company are refusing to insure me temporarily but they will give me a quote for the year.

My question is, if I pay the £1840 for the full year and cancel the insurance after, would I get a refund? Is this even possible? What are the repercussions? Is this illegal?

This is purely a thought and I am interested in the views of others. Obviously if it is illegal I wouldn't do it.

Thanks,
Tinaroo

Marktheshark

At 10-15 MPG it will be cheaper to hire a car for the two weeks.

Tinaroo

It's a 2.2 and does roughly 35 MPG. Nowhere will let me hire a car again due to my age.

InsideInsurance

Are you adding yourself to her policy as a Named Driver or wanting to buy a second policy on the vehicle?

I am guessing you are wanting to do the second so will answer on that basis. Contrary to urban myth it is possible to have two policies on the same vehicle but it can cause a mess for claims not involving an insured driver (eg fire, theft, theft followed by RTA).

You can buy an annual policy and subsequently cancel it but there will be one or more fee to pay for doing so and if you are beyond the cooling off period (14 days) then some add ons may not generate a return premium for being stopped (eg Legal Expenses)

Adding yourself as a Temporary Additional Driver on your mothers policy is an obvious option to try unless she isnt willing to risk her NCD

Tinaroo

It would be as a named driver on her policy.

So could I, pay £1840 for insurance as a named driver and cancel it after 14 days claiming a full refund (minus admin fees)?

Also I would be covered for time within the cooling period, it will be 5 days.

InsideInsurance

Tinaroo wrote: »

It would be as a named driver on her policy.

So could I, pay £1840 for insurance as a named driver and cancel it after 14 days claiming a full refund (minus admin fees)?

Also I would be covered for time within the cooling period, it will be 5 days.

Ok, so things are slightly different then.

You would do a mid term adjustment to add yourself as a named driver and the policy is rerated. If the amount due is now greater an additional premium plus an admin fee will be due.

There is no cooling off periods for adjustments so you then do a second mid term adjustment to remove yourself as a named driver and the policy is rerated again. If the amount due is now less than whats been paid then a refund is due net of an admin fee.

The rerating of the policy post removing yourself may not result in the same price as it was immediately prior to adding yourself and so the refunded premium even considering the admin fee may not be equivalent to a pro-rata of the additional premium

Tinaroo

Would it make a difference that my mum's policy is up for renewal so she would effectively be taking out a new policy with me as a named driver with a different insurance company then cancelling it after 14 days?

InsideInsurance

Tinaroo wrote: »

Would it make a difference that my mum's policy is up for renewal so she would effectively be taking out a new policy with me as a named driver with a different insurance company then cancelling it after 14 days?

Cancelling the policy or just removing you from being a named driver?

If its the whole policy then the prior comments on you buying your own policy would apply however, if you were to have a claim during the period then the policy cannot be cancelled, though you could be removed as a named driver.

The other issue with this is going to be fronting. If she is buying a policy where only you will be driving under it but you arent declared as the main driver then this is a type of fraud called fronting and would void her policy if they ever worked out what she was doing.