IGO Car Insurance Loan?

Dashbyy

Hello!
I recently setup a fresh car insurance using IGO insurance. Off the bat I paid a deposit of 2 months and pay direct debit the remaining 10 months as I always do. Today I received an email from close brothers finance asking me to sign their agreement for the year.
I'm confused, normally when I choose direct debit I just input my account number and sort code, never have I had to sign any form of loan agreement.
My worry is this; IF for example I change my car in 3 months time (which I am doing), and I find the insurance for the new car cheaper elsewhere, if I cancel my insurance will I still owe the finance company money because of this finance agreement?
Like I said normally I just select account and sort code and that's it, I've never had this before and finding it really difficult to get a straight answer from close brothers themselves.

If anybody has any experience please help a dude out!
Thanks!

societys_child

You're buying 12 months insurance on credit. The cost is based on a 12 month policy. If you cancel the policy part way through, cancellation charges apply as it's no longer an annual policy. Admin charges also apply.
Yes, you'd have to settle the finance and you'd receive a refund (usually the T&Cs in the policy booklet explain how much you'd receive depending at what point you cancel)

It's possible with some insurers, to buy 1 month policies, but these would be at a much higher premium and cost far more over 12 months.