Cancelling insurance and no claims bonus

ro1892

I'm planning on changing car in the next couple of months. I took out a policy on my current vehicle 2 months ago (so have 10 months left) with Insurer A and the price they are charging for the change for the remaining 10 months is a lot more than I can get insurance with a new insurer. When I took the policy out with them 2 months ago I had 9 years no claims.

I'm planning on cancelling the current policy and taking a new policy out with a different insurer when I get the new car. As I'm cancelling I know I won't get any extra no claims from the 2 months with my current insurer, but am I ok to use my existing no claims (9 years from when I took out the current policy with insurer A on a new policy I take out with insurer B )?

I know you can only use your no claims on one policy at a time, but I assume that as I'll be cancelling the policy with insurer A and starting a new one with insurer B then will it be ok to use the same 9 years no claims on the new policy? The start date of the new policy will be after the old one has been cancelled, so the no claims will not be being used concurrently.

Aretnap

Yes.

You should ask the old insurer to send you proof of your no claims bonus when you cancel (they will usually do this automatically, but no harm reminding them).

DullGreyGuy

As long as you cancel the existing policy before buying the new one you'll be fine, some people want an overlap of a few weeks whilst they dispose of their old car and that where mistakes are made. 

ro1892

Thanks both for the replies. There won't be any overlap. Plan is to sell the car to wbac a couple of days prior to picking the new one up 

A couple of follow up questions after reading the replies:

Would I need to cancel the old policy before buying the new one? Or would it be ok to take the new one out before I cancel the old one (but with a start date of after the old one will be canceled)? I don't know whether I can cancel a policy from a specific date in the future, or if cancelling it will cancel it from now

Should I ask the insurer I was with for 2 months for the no claims proof? (This will be the same number of years as the proof I used when I took the policy out). Or should I use the one I used when I took the policy out 2 months ago?

prettyandfluffy

Check what the admin charge for cancelling the existing policy is and factor it into your sums.

DullGreyGuy

ro1892 said:

Would I need to cancel the old policy before buying the new one? Or would it be ok to take the new one out before I cancel the old one (but with a start date of after the old one will be canceled)? I don't know whether I can cancel a policy from a specific date in the future, or if cancelling it will cancel it from now

Should I ask the insurer I was with for 2 months for the no claims proof? (This will be the same number of years as the proof I used when I took the policy out). Or should I use the one I used when I took the policy out 2 months ago?

You can cancel from a future date but equally the issue is having the two policies in force at the same time not physically owning two policies with one not having incepted yet. 

Most insurers who you cancel with after a short time won't issue you a new NCD but return the one you sent them (obviously back in the days of physical post). Most insurers accept an NCD for up to 2 years from the date of issue so being 2 months and a bit old won't be a problem.