Question about temporary car insurance vs cancelling

Levatorani123

Can somebody help me here please.

Because  my lease vehicle was delivered late in 2022  and I had taken out insurance from the earlier date, I am left with a 2 week gap with no insurance and returning the vehicle.

I searched for temporary cover and it is coming up  extortionate  prices of 230 a fortnight, whereas my monthly premiums are about 90 a month.

What is  the downside to taking out insurance like I would monthly and cancelling after 13 days paying  whatever is due for the two weeks plus the admin fee of £25?

Is there any problem or issue with doing this?

Thanks.

Levatorani123

Also does a 14 day cooling off period apply even if you are renewing?

Thanks.

GrumpyDil

Are you getting a new car as if you are it might make sense to move the insurance onto the new car.

If not, then yes but if you cancel outside the 14 day cooling off period you may well find the costs are higher than just paying for the days on cover depending upon the insurers cancellation policy. 

DullGreyGuy

Levatorani123 said:

Can somebody help me here please.

Because  my lease vehicle was delivered late in 2022  and I had taken out insurance from the earlier date, I am left with a 2 week gap with no insurance and returning the vehicle.

I searched for temporary cover and it is coming up  extortionate  prices of 230 a fortnight, whereas my monthly premiums are about 90 a month.

What is  the downside to taking out insurance like I would monthly and cancelling after 13 days paying  whatever is due for the two weeks plus the admin fee of £25?

Is there any problem or issue with doing this?

Thanks.

In principle no problem in doing it but you need to be very careful that you understand the cancellation terms. For example, some will charge "short term rates" for the days on cover you do have and you've already seen that those are vastly more expensive. 

What's your vehicle plans post lease car? If another vehicle is coming at the same time you may be better off transferring the policy across rather than cancelling it and buying a new one. 

Nobbie1967

You’d have to look at the t&c on your policy to see what the cancellation policy is. If you’re paying monthly, then you have taken out a loan and may have to pay the full interest due over the year. Also need to check if the refund will be pro rata. Did you go through a broker as their commission will not be refundable. 

Levatorani123

DullGreyGuy said:

Levatorani123 said:

Can somebody help me here please.

Because  my lease vehicle was delivered late in 2022  and I had taken out insurance from the earlier date, I am left with a 2 week gap with no insurance and returning the vehicle.

I searched for temporary cover and it is coming up  extortionate  prices of 230 a fortnight, whereas my monthly premiums are about 90 a month.

What is  the downside to taking out insurance like I would monthly and cancelling after 13 days paying  whatever is due for the two weeks plus the admin fee of £25?

Is there any problem or issue with doing this?

Thanks.

In principle no problem in doing it but you need to be very careful that you understand the cancellation terms. For example, some will charge "short term rates" for the days on cover you do have and you've already seen that those are vastly more expensive. 

What's your vehicle plans post lease car? If another vehicle is coming at the same time you may be better off transferring the policy across rather than cancelling it and buying a new one. 

No I will have about a month or so with no vehicle.

Why  is temporary cover so extortionate? Very frustrating and I dont even know how to get it back to the lease company drop off point if I dont get insurance.

Levatorani123

Nobbie1967 said:

You’d have to look at the t&c on your policy to see what the cancellation policy is. If you’re paying monthly, then you have taken out a loan and may have to pay the full interest due over the year. Also need to check if the refund will be pro rata. Did you go through a broker as their commission will not be refundable. 

Havent done it yet, have until Mid December.

Levatorani123

I could have renewed with my current provider, paid 80 for the month gthen cancelled after 12 days but Im not sure what hidden fees that may incur . I can only see it says £25 to cancel within 14 days.

Assuming you get a cooling off period with a renewal?

Thanks

400ixl

Given the cancellation fee's, it may be cheaper to let the policy run and then just change to the new car when you get it. Some insurers will allow you to pause the policy as well.

Levatorani123

400ixl said:

Given the cancellation fee's, it may be cheaper to let the policy run and then just change to the new car when you get it. Some insurers will allow you to pause the policy as well.

This might be a better idea, ill ask them. Thanks.

Herzlos

400ixl said:

Given the cancellation fee's, it may be cheaper to let the policy run and then just change to the new car when you get it. Some insurers will allow you to pause the policy as well.

It's not recommended to have an insurance policy covering a car you no longer own. If something else happens to it and it's not insured directly they will fall back to your policy.