Using the 21 days insurance trick

k6chris

loskie wrote: »

you need to realise that you DO NOT pay your insurance monthly. What you do do is make monthly repayments to the loan given to you which paid your annual policy off in one.

You really do need to understand this! You have taken out a loan to buy an annual insurance policy and that loan has a monthly repalyment of £80ish, you have not taken out monthly insurance at £80 a month for a period of 12 months. If you cancel that loan after 1 month (say) you will almost certainly have to pay more than just the pro-rata insurance you have used. As others have said, phone up the insurance company and get an actual figure for what refund you would get.

AdrianC

A chunk of the £930 premium will be fees and charges, not premium, especially if you're paying monthly. Find out how much, because they don't form part of the pro-rata refund that you get by cancelling within 14 days.

Yes, buying insurance within a day or two of the policy starting costs a chunk more than even a week or two in advance - I got caught by this when changing cars a few years ago, and did exactly the same as you're suggesting.