Car Insurance

[lankeela]

My friend is with AA car insurance and pays monthly by direct debit. The renewal date is next May. She has got quotes from other firms which are much cheaper and wishes to terminate her AA insurance, but they say she has to pay about �175 to cancel the current insurance.

Is there any way round this?

[Grunty]

When she pays the instalments, she is not buying insurance for a month. She has bought insurance for a year, and owes the rest of the money, plus interest for the year if that is the case. It is probably best to wait until the renewal date.

[lankeela]

Thanks, I realise that, but as the new quote is over �200 less she will be better off, even if she pays the cancellation fee! It was worth a try though.