Temp car insurance or normal car insurance?

spira9

Hi, my insurance has expired. I am trying to sell the car but still need to use it for work etc. I have looked into temporary car insurance but it seems pricey around £150 just for a few weeks. Normal car insurance would be around £50 a month. I am wondering if I should buy new car insurance paying monthly and then when I sell the car I can cancel, only paying less than a month of insurance? Would there be any problems with this? Thanks.

MovingForwards

The admin fee for cancelling your policy.

But I insured my car knowing I was selling it a few months later, my RAC admin fee was £25.

I wouldn't go to the expense of temporary insurance in case it takes longer to sell.

spira9

Yeah admin fee would be £25 + the insurance I used if I cancel within the cooling off period. Seems to be the way to go. The car is taking a long time to sell due to time wasters.

mgfvvc

spira9 wrote: »

I am wondering if I should buy new car insurance paying monthly and then when I sell the car I can cancel, only paying less than a month of insurance? Would there be any problems with this? Thanks.

Paying monthly is not the same as a monthly policy. It's an annual policy on finance. I believe most insurers will charge you what they would have charged for a short term policy and require you to stump up the difference.

spira9

I'm Paying monthly not annually. I don't quite get what you mean?

Nearly_Old

spira9 wrote: »

I'm Paying monthly not annually. I don't quite get what you mean?

All normal car insurance policies are annual policies. In your case you have effectively borrowed the money for the annual policy and are paying it back by monthly payments. If your car was involved in an accident and was written off after say 3 months your insurers would deduct the other 9 payments from any monies due to you as it is an annual policy.

spira9

I only plan on keeping it for a week or so until the car sells. Will be on my drive mostly.

Nearly_Old

spira9 wrote: »

I only plan on keeping it for a week or so until the car sells. Will be on my drive mostly.

Although you might only be using the insurance for a short time you have still bought an annual policy and paying for it monthly instead of making one full payment. If you cancel after only a few weeks when you sell the car then there is likely to be quite a high cancellation charge - you need to check the policy documents

spira9

Nearly_Old wrote: »

Although you might only be using the insurance for a short time you have still bought an annual policy and paying for it monthly instead of making one full payment. If you cancel after only a few weeks when you sell the car then there is likely to be quite a high cancellation charge - you need to check the policy documents

Yeah like I said before in a previous post it's £25 plus what I've used.

Nearly_Old

spira9 wrote: »

Yeah like I said before in a previous post it's £25 plus what I've used.

Its only £25 in the 14 day cooling off period and if your car does not sell within that time the cancellation fee is likely to be a lot more.

chrisw

Do you need to cancel it when you sell the car?

Presumably you are getting a replacement car so you could transfer the insurance to the new car, or at least suspend it until you've found one.