[Closed] Insurance Qs

Typically you still need to pay for the days you were covered, and often you might lose any admin fees.

http://www.confused.com/car-insurance/guides/how-to-cancel-your-car-insurance

Cancelling at the start of the policy
UK insurance rules state that consumers have a 14-day “cooling off” period when they purchase most kinds of cover. This means that, if you want to end a policy within two weeks of receiving your documentation, you should receive a more or less full refund of your premiums. But if you cancel within the cooling-off period, you may have to pay an administration fee (typically less than a full cancellation charge) as well as the cost of however many days you were covered for.
So if your policy has not yet come into effect when you cancel, you should only have to pay the administration charge.

Read more: http://www.confused.com/car-insurance/guides/how-to-cancel-your-car-insurance#ixzz2FcrNAyZm

Looking at my own policy, if I had cancelled within the 14 day cooling off period the insurer still reserves the right to charge a intermediary fee, however the intermediary fee is better than the normal pro-rata rate plus cancellation admin fee.

However with regards to risk, if a claim is made during the 14 day period then the full premium would be lost. Another risk will be if a claim was made against you after you had cancelled the policy - your insurer may not want to know.

try it and let us know!

Thanks peeps.

I know about the general rights to cancel, return of premium-fee etc, the Q is whether taking out a policy to get cover for 7 days with the intention of cancelling before 14 days (as there is no refund after that point) may cause any problems.

Can you not just buy a short term policy/per day policy?

I had one for wife-faces' dad's car once. Would that get round the problem?

I am sure you will get away with it tbh due to the rules

Can't you just get a free 7 day 'Driveaway' policy?

You have to put up with a longish phone call where they'll try to sell you the full policy but it's not too bad

Aviva does them

It's not a car policy - it's a unique unoccipied property policy, I can't get any other cover, and the renewal date is 8 days before completion of its sale.

What you insuring?

Motor/Home will typically be a admin fee within the 14 days although there are brands that wont charge you if you are really determind to save the fee.

Ah..if this is an existing policy your asking the wrong people, try your insurer.

A better way would be to extend the existing policy by a fortnight or so rather than taking out a new one. That way, you're covered for the whole period, were a claim to come to light after the insurable interest transfers.

If you cancel a new policy during the cooling off period, then it [i]may[/i] be cancelled ab initio and be considered never to have been in force.

You're better off talking to your insurer / broker.

meesterbond - Member
If you cancel a new policy during the cooling off period, then it may be cancelled ab initio and be considered never to have been in force.

I would assume this happens - my point is that if a claim arose in the 13 days then I wouldn't cancel. Can I get caught out though?

Insurer's standard terms are that the policy lasts 3 months only, may be worth a punt to ask them though.

risk vs cost

How much is a full year vs buying for 8 days and cancelling or just don't bother continuing the insurance - what's the worse that could happen...

my point is that if a claim arose in the 13 days then I wouldn't cancel. Can I get caught out though?

Thankfully there is no evidence you intended to do this so i reckon yes 😉

I would try the extend your policy route and explain why - if this fails take out the policy then cancel it - if you dont use the cooling off period and pay what is required then that must be OK .

I cannot see how yo would be caught as what you have done is not actually illegal- well I assume not

Risk is low but consequences high.

I doubt it's illegal junky, I just want to make sure I don't get caught out.

Theoretically it's possible to get caught out. Say there's an incident on day 12, you cancel day 13 and the claim comes to light day 14 you [i]could[/i] be held liable and you wouldn't be covered as there's was never a policy (again assuming that it's cancelled ab initio and not short term)

Ensuring that there's no break in cover is just safer although the risk is pretty low.

Mulling it over, I have come to the same conclusion as you.