Car insurance query - advice please

searchlight123

I have a second car that i need to re-insure from next month. It is in my name so it only now has 1 year NCD as my first car benefits from my 20+ years of NCD.

I intend to sell the second car in the spring and am wondering when I re-insure in February should I pay an annual premium and hopefully get refunded after I sell the car for the remainder of the year or is it better to pay the insurance on a monthly basis and then just cancel the policy when the car is sold and pay no further premiums?

I'm not sure if the second method will affect my record going forward (ie when you are asked in the future if you have ever cancelled insurance or had insurance cancelled in the past).

Would welcome a steer on this please.
Many thanks.

mgfvvc

tonygold said:
I intend to sell the second car in the spring and am wondering when I re-insure in February should I pay an annual premium and hopefully get refunded after I sell the car for the remainder of the year or is it better to pay the insurance on a monthly basis and then just cancel the policy when the car is sold and pay no further premiums?

I'm not sure if the second method will affect my record going forward (ie when you are asked in the future if you have ever cancelled insurance or had insurance cancelled in the past).

Paying premiums monthly is just buying an annual policy on finance.

I don't think they ask if you have cancelled, just if an insurance company has cancelled a policy.

DullGreyGuy

tonygold said:

I have a second car that i need to re-insure from next month. It is in my name so it only now has 1 year NCD as my first car benefits from my 20+ years of NCD.

I intend to sell the second car in the spring and am wondering when I re-insure in February should I pay an annual premium and hopefully get refunded after I sell the car for the remainder of the year or is it better to pay the insurance on a monthly basis and then just cancel the policy when the car is sold and pay no further premiums?

I'm not sure if the second method will affect my record going forward (ie when you are asked in the future if you have ever cancelled insurance or had insurance cancelled in the past).

Would welcome a steer on this please.
Many thanks.

Paying monthly for an annual policy is just buying an annual policy and getting a loan for the premiums. The result of cancelling the policy in both cases is identical in most cases and in a few cases will be more expensive if the seller uses a third party finance house (so its literally a loan) rather than internally financing it. 

When you choose to cancel a policy you dont have to declare that as a "cancelled policy", its when an insurer cancels it for non-payment or voids it for false declarations etc that you need to declare it

Your alternatives are:

1) By temporary insurance, its much more expensive per day than an annual policy but cost of termination tends to be much lower so if you are confident of a quick sale and dont want to spend hours looking at different annual insurers cancellation charges etc it may be ok but if it doesn't sell quick it will be very expensive

2) Add the car as a Temporary Additional Vehicle to your other insurance... not all insurers allow it these days so may be a non-starter. Some will charge an admin fee, which if high could make it expensive and some have a limit of how long and how many times a year you can do it so again if the sale takes a while you may find this option disappears after 2 months etc. 

Frozen_up_north

Ask the insurer, as others said monthly is generally just a loan, stopping payments will result in a demand for the balance!

In a similar vein, I took out buildings insurance on a property that I inherited. The plan was to sell it as soon as possible. The insurer said to take annual and then cancel and ask for a partial refund once the property sold.