Short term insurance

Tam_Pepper

My current car insurance is due for renewal on 16th May 2024. My Problem is, I am awaiting a new car from the manufacturer and it is due approx. Mid May to the end of May. If I insure my new car is there a penalty for cancelling it in the first Month

DullGreyGuy

Yes, the cancellation charges vary significantly between providers. Typically they are slightly cheaper when buying from a direct insurer (aviva, direct line, admiral etc) than from a broker or other intermediary... unfortunately lots of people dont know if they are buying from a broker or direct, in fact many think they're direct when its a broker or other intermediary. 

Typically cancellation fees are £30-£60 but some will also charge "short term rates" for the time on cover, with a broker both the broker and insurer may change a cancellation fee and in some cases there can be a loss of commission fee... will all be specified in the policy book though. 

Tam_Pepper

years ago there was such a thing as a cover note. do they still exist

XRS200

Tam_Pepper said:

years ago there was such a thing as a cover note. do they still exist

They're not really needed now due to technology.  A cover note wouldn't help you anyway.

mgfvvc

Tam_Pepper said:

My current car insurance is due for renewal on 16th May 2024. My Problem is, I am awaiting a new car from the manufacturer and it is due approx. Mid May to the end of May. If I insure my new car is there a penalty for cancelling it in the first Month

Why would you cancel, rather than transferring the policy to new car?
Obviously it might be hugely more expensive, in which case you might need to change insurer. In most cases just transferring the cover to the new car would be the normal approach. You might want to check before renewal what the cost would be, if your insurers will tell you.

DullGreyGuy

Tam_Pepper said:

years ago there was such a thing as a cover note. do they still exist

A cover note covered the gap between the broker selling you the policy and the insurer being able to getting the certificate of insurance to you. Given a certificate can now be issued and emailed in milliseconds the cover note has fallen out of necessity