Norwich union cover for 2 weeks, followed by a year's cover from cheapest insurer starting on my 25th birthday, looks quite a good option. Only slight problem is this:
"Can I use Norwich Union's Short Term Insurance policy to obtain a UK road fund licence?
No. Whilst short term insurance certificates provide evidence of insurance in the format prescribed by the Road Traffic Act legislation, DVLA or UK Post Offices will not accept these certificates for road fund licence purposes."
Since my car came from a car supermarket, it has no tax. It's currently off-road on my drive, but I don't really want to wait another two weeks to get a tax disc for it.
I could take in the insurance certificate to the post office for the cancelled insurance for the 2.4T, not sure if that would be a problem given that the car is a 2.5T.
Other option is to take out cover at full £1100/year and just cancel it within 2 weeks, which most insurers seem to allow you to do, and then reinsure from my 25th birthday.
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I work in Insurance and would just like to distance myself from the inference from the title of this thread that insurance can be in any way be "fun and games".
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>>Anyway, as it happens my birthday is in 2 weeks time, and I will be driving it a maximum of 4 times before then
Park your car somewhere it won't get nicked, rent a cheap little thing from local Avis or similar for the four times you need a vehicle.
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>>Anyway as it happens my birthday is in 2 weeks time and I will be driving it a maximum of 4 times before then Park your car somewhere it won't get nicked rent a cheap little thing from local Avis or similar for the four times you need a vehicle.
I'm going to take out an annual policy and cancel it within the standard 14-day cooling off period. Free insurance for 14 days, then take out a year's policy from my birthday.
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All well and good. I originally thought this may be an idea... Hopefully you won't need to make any claims during that time.
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All well and good. I originally thought this may be an idea... Hopefully you won't need to make any claims during that time.
Halifax have very generous terms in this respect:
:If you have bought or renewed your policy recently, you can take advantage of our 14 day cooling off period. Under this you can cancel your cover by simply returning all your policy documents to us within 14 days of receiving them. As long as no incidents have arisen which could result in a claim under your policy, we will refund any premium you have paid for this cover. If any incidents have arisen, we will apply a pro-rata charge for the time you have been on cover.
If you make no claim, then the cost is zero. If you do claim, they charge you, but only for the period you've been covered for. Not bad really.
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sounds like fraud to me with a blunt instrument
i am NOT a lawyer mind
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sounds like fraud to me with a blunt instrument i am NOT a lawyer mind
How's it fraud? If you look at any insurance policy it clearly says you've got 14 days to change your mind, no questions asked.
This is a legal right - insurance policies have a cooling-off period.
What's the fraud?
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as i said im not a lawyer but you are going to use the policy to tax a car, run the car ,then return the policy,as i see it you are using the insurance not putting it on the mantelpiece to have a think about it while having a muffin
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as i said im not a lawyer but you are going to use the policy to tax a car run the car then return the policy as i see it you are using the insurance not putting it on the mantelpiece to have a think about it while having a muffin
Many insurers charge, as is their right, under the cooling off period law, for the period you've used.
So if you have a £365 premium and cancel after 14 days, they charge you £14, refunding £351. So in that case you have used the insurance, but you've also paid for it, so there's really no issue.
Just because a few insurers choose not to charge for customer service reasons, doesn't make it any difference. The cooling-off period is not for you to look it, it is a legal right to cancel within 14 days for any reason.
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Mark will answer this more correctly (motor insurance is not my speciality) but I suspect that the 14 day cooling off period applies to finance not to the insurance. If you cancel after 14 days you will be charged premium for the time you were on risk but I'll bet that flat pro rata will not apply - ie you will pay for more than 14 days worth.
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Mark will answer this more correctly (motor insurance is not my speciality) but I suspect that the 14 day cooling off period applies to finance not to the insurance. If you cancel after 14 days you will be charged premium for the time you were on risk but I'll bet that flat pro rata will not apply - ie you will pay for more than 14 days worth.
The law is specified in The Financial Services (Distance Marketing) Regulations 2004 www.opsi.gov.uk/SI/si2004/20042095.htm
Insurance is classed as a "Financial Service"
Re the right:
" 10. - (1) For the purposes of regulation 9, the cancellation period begins on the day on which the distance contract is concluded ("conclusion day") and ends as provided for in paragraphs (2) to (5).
(2) Where the supplier complies with regulation 8(1) on or before conclusion day, the cancellation period ends on the expiry of fourteen calendar days beginning with the day after conclusion day."
Re the charge,
"Subject to paragraphs (7), (8) and (9), the supplier may make a charge for any service actually provided by the supplier in accordance with the contract.
The charge shall not exceed an amount which is in proportion to the extent of the service provided to the consumer prior to the time at which the cancellation event occurred (including the service of arranging to provide the financial service) in comparison with the full coverage of the contract, and in any event shall not be such that it could be construed as a penalty."
So in other words, the insurer can charge any amount between zero and the sum of (the cost of arranging the insurance - admin cost) + (the pro rata daily cost of the insurance used).
And the cost must be notified
"The supplier may not make any charge unless he can prove on the balance of probabilities that the consumer was informed about the amount payable in accordance with -
(a) [.] paragraph 13 of Schedule 1,
"
Paragraph 13 says:
"Whether or not there is a right of cancellation and, where there is a right of cancellation, its duration and the conditions for exercising it, including information on the amount which the consumer may be required to pay in accordance with regulation 13, as well as the consequences of not exercising that right."
In other words, the insurer must tell you how much cancellation might cost. This will be in the policy document.
Halifax's is here:
carinsurance.halifax-online.co.uk/s_faq.htm
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halifax actually won't insure me till I'm 25, so I went for Admiral. They have a £19 cancellation charge, but it's much cheaper than the £71 Norwich Union would have charged for 14 days short-term insurance, and I'll be able to get a tax disc.
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