Car insurance

[BJM1985]

I'm 2 months into a car insurance policy, pay each month. Due to circmstances had to scrap the car and currently have no car.

 

The insurance company suspended my account, however need to make monthly payments. This will not affect no claims bonus.

 

However I will not be getting another car til next year.

 

If I keep paying this each month with no car, will I still get a no claims bonus?

 

If I stop paying, how much of a hastle will it cause to get other policys ie from another company?

[cerberusalert]

Moved to the Motoring Forum.

[BrazilianCCK]

You may have to pay some sort of "cancellation fee" on the policy, but will still be cheaper (probably) than you keep on paying each month - you will retain whatever no claims bonus you currently have, but you won't get another years bonus unless you keep on paying

[BJM1985]

I'm a first driver. So was thinking probably be wize to keep paying to get a NCB. However wondered if that was legal and if the insurance provider will allow it.

[BJM1985]

If I was to cancel I would pay £30.00 fee therefore adding to what I owe. The comapny said I could get money off when I put a new car on depending how long my account is on suspension.

[BrazilianCCK]

I still think it will work ouit cheaper to pay the fee and cancel the policy - I am assuming here you are a young first driver, in which case if you are a year older next year when you want to insure another car, that will help a bit with the ciosts

[BJM1985]

I'm 26 , 27 next year. From what I understand, Iwill still be liable for the full amount outstanding on the policy? If this is the case then I prob be better off paying as I am to get something for my money. That being a NCB.

 

So annoyed with the car to be honest, my own fault. Wanted a car and wanted one NOW. So common sense went out and weeks in, mechanical faults meant scrap.

[BrazilianCCK]

No, that's what the £30 cancellation fee is for, to cover their costs for ending the policy early - you won't be liable for any further payments

[BJM1985]

A right, I though it would go on top off what I owe.

 

Would I get any money back? I payed a deposit follwed by 9 monthly payments of £150.00

 

Just means I would be back at square one and need to come up with the deposit. But as I said, kicking myself for rushing to buy a car!

[BrazilianCCK]

No unfortunately, that's why they like to take a nice big deposit off you up front !

[BJM1985]

Just read the very small print and it says I may be liable for the outstanding amount under the credit agreement. I hope not!

 

Say I do need to pay them. What affect will it have I simple don't pay? Will other insurance providers be aware of this and therefore make it hard to get insurance on a monthly basis?

[BrazilianCCK]

No, you won't have to pay - they are not allowed to charge you for a service they are not supplying especially after charging you £30 for the privelege of cancelling !

[BJM1985]

thanks ))

[eeyorebob]

Hi

 

Assuming you havent made a claim, then you can cancel, pay the cancellation fee and potentially any owing premium upto the date of cancellation (say you cancel mid month and your payment date is 1st of the month - you would have to pay upto the date you cancelled AS WELL as the cancellation fee.) You will however NOT build up any NCD so when you "restart" a policy next year, you will NOT be able to say you have 2 months NCD etc, as it wont be classed as built up