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Car insurance - cancel or stay?

3 replies

HforHavana · 25/02/2021 15:02

This may be a bit confusing, so sorry in advance if I ramble. Will try to keep as simple as possible.

So I currently have a car which I insured in October with a really high premium due to my partner (named driver) having points. Payments are £200 a month.
We are getting a new car in the next few days and I will also be the main driver on this. So to cancel my existing insurance and get both cars insured on a multi car policy, it's £150 a month. Seems a no brainier, extra car insured and for cheaper payments each month?

So I rang my current insurance company to see if they could at least match this. They said that they cannot adjust the premium I have on the current car, but they can add the new car on a pro rata between now and October (renewal) for £63 extra month. This would mean the insurance payment for both cars would be £263 per month. Over £100 more per month than cancelling and restarting.
However, the catch is that if I choose this option, when it comes to renewal, they will give me 1 years no claims bonus on the second car even thought I will have only had it for 8 months. (Given that I don't actually claim)

If I cancel now, and start a new policy I will have to start my current year again and won't have the no claims bonus on the new car.

For what it's worth, I have had my license between 3-4 years and have 1 years no claims on my current car.

I'm pushing towards cancelling and starting with a new policy as

  1. There is no guarantee I won't make a claim in the next few months
  2. Cheaper payments in the short term

So my question is- do no claims bonus make a huge difference at renewal and would I be worth sticking my hand in my pocket for a few months in the hope that the insurance drastically decreased at renewal?

Sorry if this doesn't make sense but I am stuck!!

OP posts:
SadderThanEeyore · 25/02/2021 16:18

Have you asked how much your policy would be if you took your partner off? Surely he only needs to be on one car for now if his points are making it expensive?

Nookable · 25/02/2021 16:24

I'd also be leaning towards the new policy, as you said, no guarantee that you won't need to claim before the year is up.

There is info online though on how much discount each year of NCB gives. May vary between insurers but the link below gives an idea

www.admiral.com/magazine/guides/car-insurance/how-the-no-claims-bonus-works

HforHavana · 25/02/2021 16:59

@SadderThanEeyore I didn't even think to take him off one! Iv been that stressed doing quotes and phone calls that Iv been answering all the questions in autopilot 🤣

@Nookable that's really handy that table, Thankyou! I didn't think there was a set percentage, I just thought it was a big algorithm they used!

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