2 car insurances due at the same time

Stitchylinda

We both have cars and the insurance renewal dates are within a couple of days of each other.

Up until now we have been paying by monthly direct debit but the APR has shot up and we could save over £100 by paying annually. However, having both at the same time will lead to a huge dent in our finances.

Is there any way to move the insurances round so that there are a few months between them or not?

Quentin

The only way to do this would be to take one car off the road and sorn it for the few months you need.


A separate solution would be to take out a new credit card (if you can) with a 0% interest offer for the first year. Buy the insurances with it and just pay the minimum amount each month till you can clear it.


Repeat each year

Stitchylinda

Thanks, Quentin - we could SORN one car for a month in August but would need to insure it until then so would have to cancel after only one month.

Do you know if there would be hidden costs in doing this (SORN, re-taxing, early cancellation cost, renewing insurance with same company etc) or penalties?

bigadaj

Can you get a 0% purchases credit card to pay for the insurance and then pay off in monthly chunks over 12 months?

Le_Kirk

Hidden (well not so hidden) would be the loss of one months tax due to only being refunded whole months - unless your tax (VED) comes due at same time as insurance in which case just SORN instead of renewing you VED.

Stitchylinda

Trouble with a 0% card is we would be back in the same place next year!

Quentin

Stitchylinda wrote: »

Thanks, Quentin - we could SORN one car for a month in August but would need to insure it until then so would have to cancel after only one month.

Do you know if there would be hidden costs in doing this (SORN, re-taxing, early cancellation cost, renewing insurance with same company etc) or penalties?

Yes it would be an expensive option as you would have a hefty cancellation fee if cancelling after a short period on cover.


If you SORN for complete calendar months there is no tax penalty


No need to renew with the same company if another is cheaper after the SORN (Though you get no NCD at all for the part year on cover)

Quentin

Stitchylinda wrote: »

Trouble with a 0% card is we would be back in the same place next year!

Exactly!


Which is why I suggested you repeat the exercise each year (till you run out of credit cards to apply for!)

System

Stitchylinda wrote: »

Trouble with a 0% card is we would be back in the same place next year!

Only if you're daft enough not to start putting money aside to cover it. It isn't like its an unexpected expense is it? Chances are a 0% card is going to be 0% for more than 12 months so you can make lower payments over a longer period for the up-coming insurance and put money away for the following year.

At some point you have to start to break the cycle of borrowing money to pay normal household daily living expenses.