Cancelling and renewing car insurance?

palgrave

What stops someone from continually taking out car insurance, cancelling within the 14 day cooling off period and repeat the whole process? They can, in theory, get free car insurance if they repeat this process with different car insurance companies.

tykesi

I would imagine something on the MID would soon flag that person up and insurers would start refusing cover. Remember that question "have you ever had insurance cancelled, refused, declared void"? That could make it a very expensive mistake if it was picked up on.

palgrave

tykesi wrote: »

I would imagine something on the MID would soon flag that person up and insurers would start refusing cover. Remember that question "have you ever had insurance cancelled, refused, declared void"? That could make it a very expensive mistake if it was picked up on.

This wouldn't apply in this circumstance. Only if the car insurance company decides to cancel on you then you will have to declare that. If YOU cancel it within the 14 day cooling off period it does not matter.

Car_54

palgrave wrote: »

This wouldn't apply in this circumstance. Only if the car insurance company decides to cancel on you then you will have to declare that. If YOU cancel it within the 14 day cooling off period it does not matter.

But the question is ""have you ever had insurance cancelled, refused, declared void"

So you take out and cancel policies with companies A, B and C. Company D spots this and refuses cover. What do you tell company E?

Inner_Zone

palgrave wrote: »

This wouldn't apply in this circumstance. Only if the car insurance company decides to cancel on you then you will have to declare that. If YOU cancel it within the 14 day cooling off period it does not matter.

But an insurer might grant you insurance and then flag you up as serial canceller and then decide to cancel without giving you a reason. So then you would have to declare it.

facade

You will be charged a reasonable admin fee when you cancel, you won't get all your money back (read the T&Cs), and rightly so, as you would have had 14 days insurance cover.

palgrave

Car_54 wrote: »

But the question is ""have you ever had insurance cancelled, refused, declared void"

So you take out and cancel policies with companies A, B and C. Company D spots this and refuses cover. What do you tell company E?

Inner_Zone wrote: »

But an insurer might grant you insurance and then flag you up as serial canceller and then decide to cancel without giving you a reason. So then you would have to declare it.

They won't know whether you cancelled with previous insurance companies within the 14 day cooling off period. MID does not provide that information.

takman

palgrave wrote: »

What stops someone from continually taking out car insurance, cancelling within the 14 day cooling off period and repeat the whole process? They can, in theory, get free car insurance if they repeat this process with different car insurance companies.

You still have to pay a pro-rata fee based on how many days cover you have had. The only thing you don't have to pay in the 14 day cooling off period is the admin fees.


So even if you managed to do this for an entire year then you wouldn't save any money at all. You would actually end up paying more because by the end of the year you will have no choice but to use the more expensive quotes.

palgrave

takman wrote: »

You still have to pay a pro-rata fee based on how many days cover you have had. The only thing you don't have to pay in the 14 day cooling off period is the admin fees.


So even if you managed to do this for an entire year then you wouldn't save any money at all. You would actually end up paying more because by the end of the year you will have no choice but to use the more expensive quotes.

Nope this is not true. Many insurance companies give you a FULL refund if cancelled within the 14 days.

BeenThroughItAll

palgrave wrote: »

Nope this is not true. Many insurance companies give you a FULL refund if cancelled within the 14 days.

Are you on crack?


They give a full refund of the premium less reasonable administrative expenses.


Find some T&Cs that demonstrate your point, please.

Inner_Zone

palgrave wrote: »

Nope this is not true. Many insurance companies give you a FULL refund if cancelled within the 14 days.

Well get on with it then, you won't save anything just talking about it. Come back in year and let us know how you got on.