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Buying two insurances and cancelling one during cooling off
javierbrighton
Posts: 3 Newbie
in Motoring
Hello
I have bought car insurance in the last minute for a new car, but the prices are a lot lower if the period started in 14 days time. I am considering buying another insurance starting in 13 days, with the view of cancelling the first one when the second one kicks in.
While clearly "gaming" the system a bit, can you see any illegalities or problems with this? The two insurances would be with the same company. There is no cancellation charge for the first 2 weeks but they keep a non-refundable admin fee. The website of the insurance company lets me go all the way to payment on the second premium. I'm holding on just in case.
Many thanks in advance, and apologies if this has been asked and answered before but I could not find it in search.
I have bought car insurance in the last minute for a new car, but the prices are a lot lower if the period started in 14 days time. I am considering buying another insurance starting in 13 days, with the view of cancelling the first one when the second one kicks in.
While clearly "gaming" the system a bit, can you see any illegalities or problems with this? The two insurances would be with the same company. There is no cancellation charge for the first 2 weeks but they keep a non-refundable admin fee. The website of the insurance company lets me go all the way to payment on the second premium. I'm holding on just in case.
Many thanks in advance, and apologies if this has been asked and answered before but I could not find it in search.
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Comments
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Your not gaming the system, have you factored in the costs to cancel the policy and charges for time on cover at the short term rate?
Then factor in the risk of having a claim and you needing to pay the full premium.Censorship Reigns Supreme in Troll City...0 -
Thanks for responding so quickly. The cost of cancellation would be £20 plus 2 weeks of premium. I called them to check.
I had not considered the possibility of having a claim but I guess that then I would just cancel the second policy instead and get stuck with the first more expensive one. There would be only one day of potential overlap.
My main concern - besides any legal issues - was having some life distraction or problem and missing the deadline for cancelling!0 -
Can you have two lots of insurance for one car or use your ncb on two policies. Can you end one before starting the second?There would be only one day of potential overlap.0 -
You can only use your NCB on one, but this is not an issue in my particular case.
My NCB is being held by my previous (technically still current) insurer in a no-fault claim for a write-off waiting to be settled, Adding my new car to that policy was more expensive than buying a new one and cancelling the older one once the claim is settled. They said I'd get a backdated refund from the time of the claim.0 -
Norman_Castle wrote: »Can you have two lots of insurance for one car or use your ncb on two policies. Can you end one before starting the second?
(1) Yes (2) No0
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