Car insurance hikes. When to cancel and take out new?

jmb1

I followed the advice in the newsletter and completed the comparison form which asked when I wanted cover to start. My cover doesnt actually end until January 2024 so entered tomorrow as it has to be a date in the next 30 days. The results are about the same as we are paying now (£400). The cheapest quote is with the same insurer, Churcill.

My question is, should I cancel and lock in this new price now given prices are constantly rising? Or should I wait til the suggested three weeks when it is apparently the cheapest time to try, just before it is up i.e early January (if prices are rising, won't it be pricier the longer I wait?). I'd be more than a bit gutted if I waited until January to find it's then doubled in price to insure for another year!

Second question, as the new quote is with the same insurer would I have to cancel and take out a new policy with Churchill, or could they simply alter my existing cover and extend the expiry? I doubt there's even any advantage in trying that but just in case!

MorningcoffeeIV

You'll need to factor in your cancellation fees. 

Lorian

And possibly some determent to your no claims discount years?

400ixl

You would have to cancel and take out a new policy. In doing so you would only get a proportion back and have to pay an administration fee.

jmb1

Thanks for the replies. So the advice is, if with the cancellation fee taken into account i'd be paying less than i would at time of renewal (although i dont know what this figure would be of course) it would be worth doing it?

I'm not therefore sure how to act on the mse advice 'check now if you're overpaying, even if youre not due for renewal' ?