Is it better to extend car insurance policy or cancel and purchase a new one?

clonerose

I'm having a new car being delivered soon and naturally I'm looking at insurance quotes. 

I've been driving for under 3 years, I'm 22 years old and have 1 year no claims. 

I can change cars on my current policy for around £350 which will cover me until mid November, in total for the year it will be £1400 ish. A new policy will cost the same for a year. 

My question is, will it be cheaper to cancel my current policy and get a new one or extend my current one until November then search for a new one under the assumption I would been driving for 3 years and have two years NCB? Does NCB time and driving experience make that much of a difference? 

Thanks!

flashg67

My SD is a similar age and having an extra year's NCB has saved her around 15% at renewal and may be more next time so the savings are over more than one future year.

daveyjp

Keep your current policy.

eddddy

As you probably realise...

• If you change the car on your current policy - you will have 2 years NCB from November 2020 onwards
• If you cancel your current policy and take out a new policy - the new policy will have 1 year's NCB. You will get 2 years NCB from June 2021 onwards

The Which? table of NCB percentages against years might help you decide: https://www.which.co.uk/money/insurance/car-insurance/car-insurance-no-claims-bonuses-explained-ar0922u0ll85

The date of your birthday might also be significant. A policy taken out after your 23rd birthday might be cheaper than one taken out before your 23rd birthday.

(e.g. If your birthday is on 10th November, a policy that starts on 11th November is likely to be cheaper than a policy that starts on 9th November - even though the start date is only 2 days different.)

You can also try some "Dummy Quotes" on the comparison websites - comparing premiums with 1 year NCB and 2 year NCB etc. (Use a dummy name, and perhaps a dummy address nearby, rather than your own details.)

forgotmyname

Did a quote for someone about to turn 21 and oddly it was cheaper before their birthday than after?

Their 3rd year of motoring really dropped the premiums, under £500 now.