Is this fraud? Cancelling Insurance

kapp

Hello,

Let me get this straight, I don't want to commit fraud / have any intentions to commit fraud - I just want to get the cheapest deal here.

Backstory: I bought a car 2 months ago to learn in. I own the car and the insurance is in my name as the main driver as a Provisional Learner. I am in a 12 month insurance policy, and once I pass and declare I have passed, my insurance goes up dramatically.

So I'm currently in a 12 month insurance policy as a PROVISIONAL driver (I have yet to pass my test). I'm currently in the second month of this policy, and my test is at the end of the month. When I pass and delare to them that I have passed, my insurance goes from about 400pa to 1900pa. (I have to pay the difference according to the remaining time, deducted by the amount I paid already).

I've already looked online and can see I can get new insurance for 1100pa and obviously will want to start fresh on a new cheaper policy.

I have a few questions:

Will cancelling before I have passed be cheaper than cancelling after I have passed?
And is it fraud to cancel after I have passed but not declared I have passed?

Other notes:
I have paid upfront for the insurance in one go.
My insurer is 'A Choice'.
Based on napkin estimates: if I cancel my current insurance right now, I should get back somewhere around 50-200 pounds, depending on how they calculate the costs of the cancellations and how much im entitled back - it doesn't look like it will cost me money to cancel this insurance

Cheers, let me know if you need anything else:
Kapp.

Zorillo

There will be a cancellation condition in your wording (document of insurance). What does it say?

I'd be surprised if it was this straightforward, because if it was everyone would do it, wouldn't they?

stator

Zorillo wrote: »

There will be a cancellation condition in your wording (document of insurance). What does it say?

I'd be surprised if it was this straightforward, because if it was everyone would do it, wouldn't they?

Most people don't own a car that is insured before they pass a test.

If I were you I'd just cancel the old policy as soon as you pass the test and take out a new policy before you even drive away. If you've got the quotes lines up on your mobile phone, just use your card to buy the new policy.

cajef

kapp wrote: »

Will cancelling before I have passed be cheaper than cancelling after I have passed?

And is it fraud to cancel after I have passed but not declared I have passed?

If you cancel before you pass your test how will you continue to drive if you fail until you eventually pass a test.

Of course it is fraud and if you have a claim it is likely your insurance will be cancelled which means you will have to declare a cancellation whenever you apply for insurance in the future and it will cost a fortune to get insured, that is if you can even get insurance again.

kapp

stator wrote: »

Most people don't own a car that is insured before they pass a test.

If I were you I'd just cancel the old policy as soon as you pass the test and take out a new policy before you even drive away. If you've got the quotes lines up on your mobile phone, just use your card to buy the new policy.

Hello, cheers for the reply.

That was my initial plan but I wasn't sure exactly how they calculated how much I was owed back, so if I tell them I've passed and want to cancel, but the instantly bump my premium up to 1900, and go charge me 1.5K difference, then I get a refund of like 800 - I'm essentially losing money for talking.

Also, not sure on this but... the cancellations take a few days to go through, am I allowed to issue a cancellation on this policy and take out another policy while the cancellation is going through - wouldn't I have 2 policies on one car as me as the main driver? - Is this fraud?

Cheers

kapp

cajef wrote: »

If you cancel before you pass your test how will you continue to drive if you fail until you eventually pass a test.

Of course it is fraud and if you have a claim it is likely your insurance will be cancelled which means you will have to declare a cancellation whenever you apply for insurance in the future and it will cost a fortune to get insured, that is if you can even get insurance again.

I think you misread it - I don't intent to stay as a provisional driver, because sure, that is fraud when I'm not a provisional driver. I mean cancelling the provisional insurance after I have passed but not claim I have passed yet. Then go take a full comp fully passed policy with a different company as a fully licensed driver.

Cheers.

Trentenders

You can cancel. This can be done immediately after passing your test and a new policy can be incepted.

You do not have to pay the insurer an additional for passing your test if you wish to cancel the policy at that time. I would suggest asking for a cancellation quote from them, as they will likely only give you back a small portion of the pro-rata return.

You obviously should not rely on your old insurance (even theft cover, etc.) if it's not on the correct basis.

Finally, you will lose a couple of months towards your first year of NCD. If there is not a huge difference between the overall costs of continuing with your insurer or changing then I'd lean towards staying with your current insurer, as you'd be closer to getting cheaper still quotes at your next renewal.

silvercar

I mean cancelling the provisional insurance after I have passed but not claim I have passed yet.

I would have thought that would be fine provided you haven't driven the car as a non learner once you have passed your test.

kapp

Zorillo wrote: »

There will be a cancellation condition in your wording (document of insurance). What does it say?

I'd be surprised if it was this straightforward, because if it was everyone would do it, wouldn't they?

So I went over all 4 documents they sent me, none of which dictate how cancellations occur, but one does say something along the lines of "and the standard Business Agreement on our website xyz" which when looking through, it does say they will charge me 50 pounds for the cancellations, but I know they took 100 for "setting up" my account originally, which is non refundable, so really is 150.

None of them tell me how much they will calculate they owe me based on the time I have left. Can I assume its linear. If I have 10 months left on the policy, will they give me 10/12th of the policy back (minus the 150)?

It does say this on their website policy that

Details of any applicable cancellation terms and charges will be found in your policy documents.

which is wrong as it doesn't, and tells me to come to this very document.

kapp

Trentenders wrote: »

You can cancel. This can be done immediately after passing your test and a new policy can be incepted.

Thank you, this is what I hoped was the case

Trentenders wrote: »

I would suggest asking for a cancellation quote from them, as they will likely only give you back a small portion of the pro-rata return.

Dam that sucks. I was hoping they would give me a linear return based on the remaining months (so in my case 10/12 months worth) minus any fees (the 100 non refundable to setup account, and 50 to cancel the account, so 150). So I'm payed back roughly 183 pounds. I did plan to ring them and ask, but I was going to wait till tuesday todo so.

Trentenders wrote: »

Finally, you will lose a couple of months towards your first year of NCD. If there is not a huge difference between the overall costs of continuing with your insurer or changing then I'd lean towards staying with your current insurer, as you'd be closer to getting cheaper still quotes at your next renewal.

Yeah so cancelling will lose me 2 months NC, and again, napkin math here: it would cost me an additional 1200 to continue my policy with this insurer. But by doing so I pay an extra 100 than all the other insurers are offering me, and lose 2 months worth of insurance.

So I guess I got to weigh up if 100 pounds extra cost and only 10 months worth of insurance (2 months less than getting a new policy) is worth getting my first year NCB 2 months early.

Not sure if it will effect it but I will turn 21 at the end of the year, so regardless if I get a new policy or not, by the time I finish the first year of any policy, I'll be 21.

silvercar wrote: »

I would have thought that would be fine provided you haven't driven the car as a non learner once you have passed your test.

I hoped so.

Zorillo

stator wrote: »

Most people don't own a car that is insured before they pass a test.

If I were you I'd just cancel the old policy as soon as you pass the test and take out a new policy before you even drive away. If you've got the quotes lines up on your mobile phone, just use your card to buy the new policy.

Yes, by "everyone" I meant "all A Choice customers with a policy where the premium goes up automatically when you pass". I'd be surprised if there isn't something conditions to guard against this.