Cancellation Of Car Insurance

[Hughes009]

My husband and I both have separate car insurance policies which we pay approximately £30 per month, £700 annually. My daughter has just purchased a car and we can get better deal elsewhere for multicar discount. When I rang my insurance company they advised £500 to cancel both policies. This includes £50 cancellation fee for each one. We pay by direct debit, one policy is due for renewal in December, the other is only couple months old. They advised it is because we got great discount when we took out policies and they are reclaiming this. Is is right that I have to pay £500 to cancel two policies when annual cost is approximately £700.

[ummmm]

You took out a years contact. Cancellation costs should be in the small print.

[furrypusscat]

This seems to be a double entry, I have answered your other post.

[woofgang]

Have either of you claimed?

[Haggis53]

Best to request by phone proposed new insurance company to deal with existing company policies.

[Hughes009]

Neither of us have claimed and existing company can't match quote. They wish to charge £2000 just for my daughter as this is her first insurance. We can only go on cars once as named driver, otherwise may have difficulty if she just put down as additional driver

[EDDIE51]

£2000 is a very good deal for a 1st insurance, keep your own insurance until it rus out and in the meantime put yourselfes down as named drivers on your daughters policy, it should reduce it. Your daughters insurance will drop a lot in the 2nd year.

[fairycakes69]

I'd shop around more for your daughter, £2000 is a lot, both my children were nearer £1000, each have their own car and I am named on both as well as hubby's car.

[EDDIE51]

^^ How long ago was that fairycakes? Insurance for new drivers has gone 'through the roof' in the last few years. It varies a lot with age my daughter in law has just passed her test age 26 and it was £1100 , but my other DIL was 20 and insurance was £2400 4 years ago.

[furrypusscat]

If she has one of these black boxes fitted which records everything insurance companies do give a discount but not everyone is comfortable being watched but it is something to consider to reduce premiums.

[EDDIE51]

^^ big problem with them is that you can't drive at night, there is a time limit set, around 7pm. If you do need to drive after the time limit there is a large excess to pay.

[TWR]

Hughes, this is where loyalty goes out of the window, regards your cancellation, they are in order, when you renew make sure to start that you have not ticked "Automatic Renewal" then search around, as said your Daughter would be better off finding her own Insurance, search for sites for her age bracket also the ones that include the Black Box Driving Recorder, this will make it cheaper when installed, it proves how your Daughter drives to the Insurance Company.

[furrypusscat]

Not sure how they work EDDIE or what restrictions they impose, I know of someone who has one but haven't seen her since she had it fitted but it does make a significant difference in premium cost.

[EDDIE51]

^^ They monitor your driving and can tell if you are driving well, within speed limit, use of gears, braking etc and know where you are and when.
There are limits as to when you can drive, some do not allow driving in the rush hours for example. As most accidents happen at night you have a 'curfew' time after which you can only drive if you pay an extra premium each time. You can be banned from busy roads and areas.

[Hopkirk]

Like many people I think you misunderstand the system of paying monthly.

You have agreed to a one year policy, and have effectively borrowed the money to pay for it. You pay back this loan monthly.

Cancelling the policy means you have to pay for the whole policy at that time plus any penalties for cancelling the policy and the loan.