Cancellation Of Car Insurance Charge

[Hughes009]

My husband and I both have separate car insurance policies which we pay approximately £30 per month, £700 annually. My daughter has just purchased a car and we can get better deal elsewhere for multicar discount. When I rang my insurance company they advised £500 to cancel both policies. This includes £50 cancellation fee for each one. We pay by direct debit, one policy is due for renewal in December, the other is only couple months old. They advised it is because we got great discount when we took out policies and they are reclaiming this. Is is right that I have to pay £500 to cancel two policies when annual cost is approximately £700.

[furrypusscat]

If your policies were greatly reduced, would it be better to let them run until expiry and then go for the company giving best multi car insurance then. You will have to work out which is the better deal if you are thinking of cancelling now and losing £500, will you get that back if you buy multi car discount now. It depends what is in the legal jargon as to whether they can do this. It is often in the small print which often people don't read.

[hc4361]

Have you read your contract and policies to see what the cancellation terms are?
The fact you pay monthly just means you have borrowed the money to pay for your insurance - it is still an annual contract.

[Hughes009]

Unbelievably it still works out cheaper overall by paying the £500 and taking new policy so might just have to pay money and try not to think too much about it!!!

[SirOracle]

A note of caution re multicar policies. If one of the drivers has a claim this can affect the premium for all the drivers,