Continue car insurance or new policy?

sandyman80

I am buying a new car to replace my old car.

I phoned my current insurer and they want to increase my premium and continue the insurance to March 2026 when my current policy ends.

If I contact other insurers and using comparison sites the policy would run from when I take delivery of my new car (July 2025) until July 2026.

Should I take a years insurance or 8 months insurance? The cost is quite similar £260 for 8 months or £500 for a year but I haven't finished getting quotes yet.

I was thinking it would be better to have the insurance in line with the tax and MOT or would it not really matter?

Ayr_Rage

With your current insurance you aren't paying for 8 months, you are paying the difference in premium between the new car and old until the policy ends.

If you want to go with a new insurer then you'll also need to factor in the cancellation charge with your current insurer, that could be a significant amount.

Not having the policy aligned with the purchase date is no big deal, just don't forget the renewal date!

sandyman80

Ayr_Rage said:

If you want to go with a new insurer then you'll also need to factor in the cancellation charge with your current insurer, that could be a significant amount.

I would just let it lapse if there was a cancellation fee and I would have to pay anything.

I am part exchanging my old car 

Ayr_Rage

Leaving insurance in place on a car you no longer own is not a very good idea as you could still be liable under that policy.

"Google" Double Insurance!

You should cancel it.

Brie

So you've already paid £X for a year's insurance.  And to swap the car it's another £260.  New insurance is about £500.  You could ask them what refund you would get of £X if you cancelled.  My guess would be perhaps 1/4 of the annual premium.  

So which costs more £X + £260 or £500 + 3/4 £X ?  My guess is that cancelling and going to a new policy will cost you more.

i.e. if X = 400 then £400 + £260 = £660 while £500 + £300 = £800.  Is the further end date for cancellation and new policy worth the difference?

daveyjp

Only worth cancelling and starting afresh if a new policy is significantly cheaper than the extra cost of simply swapping the vehicle on your existing policy.

sandyman80

It has been 14 years since I last bought a car and everything is different now.

My Mother and Father would have a fit that I am even buying the car on HP, when I bought my car 14 years ago it was for cash, £9000

I am going to settle the HP as soon as I can, I got a discount of £2000 because I took HP, I wouldn't have got that paying cash


I don't know if having the insurance run for a year with a new company is better than 8 months with my existing insurer.

Will they charge me another £25 when I tell them I have paid of the HP?

Badboi

sandyman80 said:

It has been 14 years since I last bought a car and everything is different now.

My Mother and Father would have a fit that I am even buying the car on HP, when I bought my car 14 years ago it was for cash, £9000

I am going to settle the HP as soon as I can, I got a discount of £2000 because I took HP, I wouldn't have got that paying cash


I don't know if having the insurance run for a year with a new company is better than 8 months with my existing insurer.

Will they charge me another £25 when I tell them I have paid of the HP?

You don’t need to tell the insurer how it’s financed.  They will just want to know what it’s worth (the market price) to see the appropriate insurance policy cost.  

You should have a 14 day cool off period with the HP, so pay that off if you can(you still get the benefit of the 2k off too).  I’m changing my car on Wednesday, insurance only went up £40  and the company said HP was a bargain at 12% 😱 (got a loan from the bank for 6.1!) 

sandyman80

 the company said HP was a bargain at 12% 

Mine is 5.7%

When does the 14 day cooling off period start from?

DullGreyGuy

sandyman80 said:

Ayr_Rage said:

If you want to go with a new insurer then you'll also need to factor in the cancellation charge with your current insurer, that could be a significant amount.

I would just let it lapse if there was a cancellation fee and I would have to pay anything.

I am part exchanging my old car 

Had a six figure sum as a charge against a customer's home for doing just that. Think the case on here last year was about £35k 

If you dont cancel your insurance on the car then you are still the policyholder of the vehicle under the Road Traffic Act. As such, if the vehicle is involved in an accident and there is no other insurance on the vehicle your insurer would be obliged to settle any third party claims. Both the law and the terms of your policy will state that if your insurer has to settle a claim because you breached the terms of your insurance (letting the new owner drive it when not named on your policy and/or failing to update them of a material change (ownership of the vehicle)) then you have to reimburse them. 

Back in my claims days I'd get a couple a year... people letting someone drive their car who wasnt insured, sold their car and didnt cancel their insurance, their teenager took the car but they won't report it as theft to the police etc. Some were life altering sums of money and you can't even go bankrupt to avoid it because personal injury compensation is explicitly excluded from bankruptcy.