Cancelling policy question.

[Phooey]

Hi all, I have never cancelled a policy mid term but after receiving my quote for the new car it occurs to me that there may be a necessity this time.

I am currently paying my insurance by installments. Now, if my current insurers, which still has 6 months left on the policy, decides to quote a huge premium, what are the rules regarding cancelling my policy now.  Will I still have to pay the full cost or just a cancellation fee?  I am thinking it may be different since I pay monthly!  I am planning to pay new policy outright this time if that helps.

EDIT: I might for clarification add that a comparison site has quoted my current insurers as being the best price but I am all too aware of changing vehicles mid term and having a huge hike in premiums till the renewal date comes round!

[Venator]

Is your insurance policy currently on your old car? How about contacting them and finding out what the cost would be to change the vehicle?

 

EDIT: I misread, I just cancelled my parent's policy (sold car) and they pay annually. The insurance company refunded the remaining amount, and did not charge a cancellation fee.

[Phooey]

38 minutes ago, Venator said:

Is your insurance policy currently on your old car? How about contacting them and finding out what the cost would be to change the vehicle?

 

EDIT: I misread, I just cancelled my parent's policy (sold car) and they pay annually. The insurance company refunded the remaining amount, and did not charge a cancellation fee.

Hi Venator, thanks for your reply.  Yes.  I am currently insured with Lloyds on my Volvo but when the Lexus arrives I will be calling Lloyds to change the vehicle.

In the past when I have done this there has been a huge hike in premium so I was thinking that it might be cheaper for me to cancel my current policy and take out a brand new one for the Lexus.  Because I currently pay by installments I wondered if the cancellation rules were the same.  I am hoping I pay a cancellation fee and that is it no more installments!

[steve2006]

Cancellation terms and conditions should be clearly stated within your insurance documents and do vary between companies.

Section 11 suggests you will have to continue with your monthly payments and they will refund the unused period pro rata.

https://www.lloydsbank.com/assets/media/pdfs/insurance/car/comprehensive-policy-document.pdf

[Phooey]

19 minutes ago, steve2006 said:

Cancellation terms and conditions should be clearly stated within your insurance documents and do vary between companies.

Section 11 suggests you will have to continue with your monthly payments and they will refund the unused period pro rata.

https://www.lloydsbank.com/assets/media/pdfs/insurance/car/comprehensive-policy-document.pdf

Thanks Steve.  I checked my policy small print and it doesn't make it clear at all.  Sounds like that's where they got you by the nuptials!   

[flookyk]

Is there a big jump in the insurance groups of your old Volvo and the newer Lexus you are getting?

I have just changed mine from a 2011 RX450h to a 2017 RX450h which is around 3 times the value but no change at all to the premiums (I pay monthly)