Question about car insurance

sumvision2027

with my first car I had to pay £400 deposit for the insurance, but what if I get a new one and sell my old car, do I have to pay the deposit again?

Ebe_Scrooge

I'm not sure what you mean by a deposit, I've never heard of that. But with most insurance policies, it's easy to change cars part-way through a policy. Phone them up, tell them the new car details, when you want it to switch, and they'll switch the policy to the new car. You may have to pay an increased premium, or you may be entitled to a refund, depending on whether the new car is more or less expensive to insure than the old one. It's not uncommon to have to pay an admin fee with many companies, something in the region of £30 or so is common. But the admin fee plus any premium increase should be the only cost.

sumvision2027

when taking my policy out on my first car, I had to pay an upfront cost of £400 as I'm paying monthly rather than annually. I've been having so much troubles with my car laterly, i've been thinking of getting rid and buying a new one but was worried about having to pay another deposit down.

couriervanman

So your paying by monthly installments all insurance companies give you the option of one upfront cost or deposit then monthly payments......generally the 2nd option is more expensive

unholyangel

sumvision2027 wrote: »

when taking my policy out on my first car, I had to pay an upfront cost of £400 as I'm paying monthly rather than annually. I've been having so much troubles with my car laterly, i've been thinking of getting rid and buying a new one but was worried about having to pay another deposit down.

Isn't the deposit always two months upfront?

Anyway, whether you will be asked to pay again will depend on whether you plan to cancel your existing policy and get a new one or whether you're going to amend your existing policy.

unholyangel

couriervanman wrote: »

So your paying by monthly installments all insurance companies give you the option of one upfront cost or deposit then monthly payments......generally the 2nd option is more expensive

Is it ever the same price or cheaper? I'd be surprised if it was given the second option you're paying for two services (insurance + finance) while the first option you're only paying for one (insurance).

sumvision2027

I'd be keeping with my policy, just changing car

unholyangel

sumvision2027 wrote: »

I'd be keeping with my policy, just changing car

If you haven't already bought the new car and have one in mind, call your insurer and ask how much the change will cost.

AdrianC

sumvision2027 wrote: »

when taking my policy out on my first car, I had to pay an upfront cost of £400 as I'm paying monthly rather than annually. I've been having so much troubles with my car laterly, i've been thinking of getting rid and buying a new one but was worried about having to pay another deposit down.

Depends...

As much as anything, it'll depend on whether you cancel the old policy and take a new one out, or whether you transfer the existing policy.

But mostly, it'll depend on the finance scheme that whichever insurer offers you.

Remember - you are buying an annual policy, then you're taking out finance to pay for it bit-by-bit over the year.

chrisw

unholyangel wrote: »

If you haven't already bought the new car and have one in mind, call your insurer and ask how much the change will cost.

This is key.

You may change your car to eg a Fiesta and there may be no additional premium so only the admin fee. Job done.

However, your particular insurance company might have had major issues with Fiesta drivers and see them as high risk, in which case they will want a huge increase in premium.

You will then have to decide whether to pay the increase if there isn't long left until renewal, or whether it would be cheaper to cancel and take out a policy with another company in which case you might need to pay another deposit.