Car Insurance confusion!

  CHarker 21:33 26 Aug 2008

I pay monthly for my car insurance and recently had my car declared a financial write-off (it's only a cheap little VW Polo but a wagon bumped the back end and damaged the boot lid - completely his fault) whereupon my broker offered me £797 + the car to settle the claim.

The car is still roadworthy but MOT runs out in 2 weeks so I thought I'd use the car until I found a replacement. I bought a new car on Friday but because of bank holiday weekend, have only got in touch with the brokers today.

I was surprised when they said my current insurer would not insure me in my new car (2001 Daewoo Lanos with 40k on the clock) because I'd been driving less then 2yrs. I asked them how I could get insured in my new car and they said another insurer had a quote of £1008 per year for insurance (I'm only currently paying £700!). This seemed steep so I rejected that offer whereupon the broker stated the only alternative was to cancel the current agreement and pay the remainder of the insurance (I renewed in June 08 so that's 10 months insurance) and take up insurance elsewhere.

This doesn't sound right at all - surely I can cancel my agreement whenever I wish and pay a small administration fee for cancellation?

  g0nvs 21:40 26 Aug 2008

You should be talking to your insurance company NOT your broker.

  josie mayhem 22:16 26 Aug 2008

I would normaly say, that your broker is the one to deal with this, but I would suggest as g0nvs said, give the insurance company a phone and see what they come up with...

My first car was a ford contina mk5 which I only kept for less than 6 months before buying a ford serria which was 5 years newer... It only cost an extra £50ish to insure my new car... And I had only been driving for the same length of time..

  carver 09:26 27 Aug 2008

I may have got this wrong but if your current insurance company is refusing to insure you on your new car then they are the ones canceling the agreement.

In this case they can not ask for the remainder of the fees due to them, you will have to look at the terms and conditions in your policy to check this out, but if it is any thing like mine then this is what it states.

And if I where you I should dump this broker as soon as poss and deal with the insurance company directly.

  HondaMan 12:21 27 Aug 2008

"surely I can cancel my agreement whenever I wish and pay a small administration fee for cancellation?"

They may charge you for what is known as "short period insurance" which is relatively expensive. And, don't forget, your momthly premium is made up of your insurance cost + fees and taxes + interest for monthly payments.

You may need to look for a firm which caters for high-risk drivers, but, as has been said, have a word with your insurers direct and cut out the middleman. You may find it cheaper too!

  spuds 12:45 27 Aug 2008

As others may have suggested, when you purchase on a monthly instalment plan, there are bound to be safeguards attached to the terms and conditions.

I purchase a whole range of insurances, which are paid for the full annual period. Most of the contracts have terms regarding refunds with pro-rota administration refund fees attached.

  Snooki3 14:45 27 Aug 2008

You will find they you have to pay for the whole year because you have made a claim.

And carver he is changeing the agreement by getting a diffrent car to what was in the agreement,so they have they right to refuse.

  Chris the Ancient 16:45 27 Aug 2008

Can click here help?

  CHarker 18:29 27 Aug 2008

carver, you were exactly correct :) I questioned it with Swinton and they stated they'd only charge a cancellation fee as they were actually cancelling the agreement (they waived the fee, in actuality).

So I've gone to another insurer and gotten a much cheaper quote.

Thanks to all!

  Stuartli 19:01 27 Aug 2008

Any service provided by a third party that earns it an income or commission, is always viewed with suspicion by me as it is in its own interest to keep the cost to you as high as possible...:-)

As a slight variation, I strongly suspect that much of the remarkable rise in property values over the past decade or so is down to estate agents consistently overvaluing properties.

  carver 22:52 27 Aug 2008

Glad you got it sorted and I hope you get a bit of luck sorting out your insurance.

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