Car insurance renewal options?

Misteek

Right guys

Ive been offered a insurance renewal.

I usually pay annually. 

I'm thinking of selling my car come January , February and buying a new one. Would it be better to just pay monthly insurance so i can cancel it once the car is sold? Or would it not make a difference? 

What also happens with NCB ? Ive got a few years of NCB and just got another year NCB from my current provider who im most likely to stick with until i sell my car. So I'd be 2 or 3 months into the new year. Would they just calculate it from there until i buy a new car?  Do i have a certain time to use my NCB ?How does it work?

AdrianC

You are still buying an annual insurance policy - so the cancellation happens in exactly the same way no matter how you pay for it. The only difference is that you are also paying fees towards the finance policy that enables you to pay the annual premium by monthly instalments.

If you cancel a policy part-way through the year, you do not get any NCB for that year. Your NCB remains as it was at the start of the policy. NCB "lives" for two years off a policy.

Is there a reason why the insurer you're considering won't allow you to simply change the car on the policy?

NottinghamKnight

Might also be worth running quotes for your new car as well to see if there are any major differences, you'd at least be fore armed and it may affect the insurance company you go with and/ or your choice of car.

daveyjp

If you change your car the current policy continues and the premium due for the new vehicle will be recalculated.  It is therefore worth finding a policy which doesn't charge for mid term changes.

Car_54

daveyjp said:

If you change your car the current policy continues and the premium due for the new vehicle will be recalculated.  It is therefore worth finding a policy which doesn't charge for mid term changes.

Only if the basic premium is competitive. There's no point in paying £100 more to avoid a £50 mid-term charge.