need to renew insurance by 06/03/08

earthlover

Is it ok to take out a new car insurance policy and instead of cancelling the old one, just let it run out?
My spouse and I want to swap cars and one car's insurance is due for renewal now while the other's is due for renewal in May. In order to swap we would both have to take out new policies now as it's illegal to use no claims on more than one car. We pay in full annually and won't get a refund now but want to avoid hefty cancellation charges.
Are there any pitfalls to having two insurance policies, one in one name and the other in the other's name for a few weeks?
Appreciate speedy reply. Thanks.

Quentin

The simple answer is there is no reason why you shouldn't just let it run out.

But could you just swap the cars over from one policy to the other?

And cancelling the no longer needed policy wouldn't bring any extra charges - you may still get a refund even after cancellation charges have been deducted.

earthlover

Thanks for your reply Quentin. At present we insure the cars that are in each other's name - our insurance company allows this. But I want to get cheaper insurance and some companies won't quote if the policyholder is not the main driver and registered keeper.
So i thought as one car is due for renewal, now is a good time to make things less complicated ifwe now take out policies for the cars we are registered to and drive most. That way we can get more quotes.

I just wondered if there maght be some legal stumbling block with one of the cars being covered on two policies between now and May.

Also our present company charges over 50 quid to cancel in first year.

Quentin

The £50 will be deducted from any refund due. If the refund is less than £50, then obviously there is no point cancelling it!

V_tricky

AAAAAAAAAAAAAH!

Before you let it run out, check that you don't have an automatic renewal set up - a lot of companies do, so if you just leave it without cancelling it (at the end of term) they will auto renew you and take the money of your card - even if you've had a new one during the year.

This has caused a LOT of headaches for people on these boards because they don't realise that their inaction (not actuallt cancelling) has prompted an action (auto renewal and full payment debited) from their insurer.