If your insurance is ending soon, easy way to save money

ItsJordannn

Hi all,
If any of your insurances end soon, ie within the next couple of weeks, a simple way to save a few hundred pound is to simply pay now for your next policy.

The reason is on the 1st of November the insurance tax which is included in your premium rises from 6% to 9.5%.

My car insurance expires on the 6th and my cheapest quote I could find if I paid now was £860 compared to £917 if I paid after the 1st.

My dads insurance expires on the 8th and he pays over £3000 because he is a lorry driver, anyway he managed to save £180 by paying now and not after the 1st.

I assume this applies to all insurances so if you can prepay for your policy to start now rather than after the 1st.

Just to confirm, if your policy is ending on the 6th of November, make sure you prepay for your new policy to start ON the 6th November not before, otherwise you may not be able to use your NCD on the new policy.

TSx

The only issue with this is that your NCD cannot be used on two policies at once - so there is a chance that the new insurer will revise their premium to a zero NCD if they ask you to send in proof...

ItsJordannn

It was to my understanding that you only need proof of NCB from when your policy starts.

For example, at the end of my current policy on the 6th November I will have 1 years NCB.

My new policy doesn't start until the 6th, so providing I don't claim from now until the 6th November, I will be able to use that years NCB on my new policy iyswim?

I can understand your point if my policy started on the 31st not the 6th after my old policy ends.

ItsJordannn

TSx wrote: »

The only issue with this is that your NCD cannot be used on two policies at once - so there is a chance that the new insurer will revise their premium to a zero NCD if they ask you to send in proof...

It was to my understanding that you only need proof of NCB from when your policy starts.

For example, at the end of my current policy on the 6th November I will have 1 years NCB.

My new policy doesn't start until the 6th, so providing I don't claim from now until the 6th November, I will be able to use that years NCB on my new policy iyswim?

I can understand your point if my policy started on the 31st not the 6th after my old policy ends.

TSx

My misunderstanding I thought you'd taken out overlapping policies

ItsJordannn

TSx wrote: »

My misunderstanding I thought you'd taken out overlapping policies

No problem, edited OP for clarification anyway.

forgotmyname

Save hundreds? Maybe my calculator needs new batteries??

Your premium would be approx £812 + 6% = £860 (approx)?

£812 + 9,5% = £889 (approx) A saving of £29 ?

Where is the £917?

Quentin

Were your quotes for the same policy obtained at the same time?


How were you able to get different quotes based on the day you buy the policy in the future?


(Most insurers hold their price for a quote for around a month, or until the start date)

ItsJordannn

forgotmyname wrote: »

Save hundreds? Maybe my calculator needs new batteries??

Your premium would be approx £812 + 6% = £860 (approx)?

£812 + 9,5% = £889 (approx) A saving of £29 ?

Where is the £917?

Obviously your saving is relative to your premium in the first place.

In my case I ended up saving £57, roughly £29 due to paying less tax and the rest due to some other variable the insurance company use.

In my dads case as his insurance is somewhere over £3000, he told me he saved over £100.

Someone's insurance may be £5000, therefore paying 3.5% may well save him well over £100.

Not sure why you question it being possible to save hundreds by purchasing your insurance before the tax increases, the average car user may not but people with much higher premiums surely will?

ItsJordannn

Quentin wrote: »

Were your quotes for the same policy obtained at the same time?


How were you able to get different quotes based on the day you buy the policy in the future?


(Most insurers hold their price for a quote for around a month, or until the start date)

Initially I got a quote of £860 2 weeks back by using a comparison site. Yesterday I went on the same comparison site and I got a very similar quote of around £862. These were both for the policy to start on the 6th November.

I opened up the quote of £860 from 2 weeks ago and phoned the insurance company, gave the quote reference and said I would like to accept this quote. She asked for a few details and said the cheapest I could now get it for was for £917 if it was to start in November due to the tax increasing. I asked her if I could just accept my quote through the internet then and just pay for it that way at £860, to which she said she's not sure, try it but she has had a lot of people phone up saying it wouldn't let them accept the quote.

It did let me accept my quote through the internet so I ended up paying £860 when the woman on the phone told me the cheapest I could get it for was £917. When paying for my policy, it did say that my premium had 6% tax included.

I'm not sure whether the woman genuinely though I wouldn't be able to accept the quote or whether she just wanted me to pay a little more.

The woman also said I would be able to get the price of £860 if started today (yesterday) however warned me against that as then I would have two policies and they would cancel eachother out, meaning I would be classed as having no insurance. (????)

I doubt that would be the case and she didn't really seem like she knew what she was going on about, but it shows that it was possible of getting the price of £860.

forgotmyname

Sounds like you paid the price for the previous quote and not the new quote.

.