Leaving current car insurer's early, how is best?

liverpooleo

Hi folks, first posting, so hello everyone
My insurance isn't due for renewal until October, but it's far more than I've been quoted elsewhere. Reading the small print they say that if you leave within the year they will charge up to £50 "to cover costs". However, with Direct Debit customers (us) if we fail to meet a payment they will give us seven days notice, then terminate us. Oh, OK, terminate our insurance. And we'd have to send our certificate back.
Nothing about fines or penalties.
So, would it be advisable for us just to cancel our DD, at the same time as switching insurers?
Our current guys are Liverpool Victoria, who we've been with for over twenty years. Looking at the quotes, there were only 3 more expensive than them. Boy, is Martin right about loyalty not paying! Anyway, just wondered if anyone had any input/experience?
Cheers,
Leo

FlameCloud

You would also have to tell the other insurers that you have had a policy cancelled.

shelly

How ever did you get a quote now in February for a policy that isn't due until October? Most co's won't quote until 30 days before renewal date. Also a lot can happen between now and October and your quote could rocket between now and then.

I'm still confused as to why you would even want a quote 4 months into a policy ...maybe Iv'e missed something or read it wrong (which wouldn't be unusual )

liverpooleo

Hi,
Thanks for your replies. The quote I've had is for now, not October. The reason we're looking is because we've been with these guys for years and blindly accepted their renewal quotes, but have read the stuff on the site about getting cheaper car insurance and decided to act. I don't want to go on paying exorbitant rates between now and October.
The quote I liked did say that we would need to cancel any existing policy (which obviously I would have done anyway) and that that might involve a penalty fee, which is why I'm wondering about the cancelling my DD route.
Hope that clarifies it!
Cheers

liverpooleo

Labman wrote: »

By cancelling a Direct Debit you will in effect have terminated the contract.. not them.

Sorry to be a pain, Labman, but would we be penalised for this? I'm only just getting my head round all this financial stuff having hidden my head in the sand for years, and it's a lot to take in!
Leo

shelly

liverpooleo wrote: »

Hi,
Thanks for your replies. The quote I've had is for now, not October. The reason we're looking is because we've been with these guys for years and blindly accepted their renewal quotes, but have read the stuff on the site about getting cheaper car insurance and decided to act. I don't want to go on paying exorbitant rates between now and October.
The quote I liked did say that we would need to cancel any existing policy (which obviously I would have done anyway) and that that might involve a penalty fee, which is why I'm wondering about the cancelling my DD route.
Hope that clarifies it!
Cheers

Ahhh I see now.
Remember though that if you cancel a policy you will lose the 4 months NCB you have accrued and will start a new yr with the new co.
Personally I would cancel the current policy and pay any fees or penalties because if you just stop the DD and the current insurer terminates your policy you will have to tell any future insurer that you have had a policy cancelled. I would assume this will load your premium and you may have to pay for the yrs cover in one payment as you might be seen as a customer who just cancels a DD willy nilly. *I know thats not what you're doing but I'm trying to think like an insurer would IYKWIM*

Hope that helps.

liverpooleo

Cheers Shelly, that sounds good advice to me