car insurance question?

heavymetalrock

hi, i need advice on my car insurance, im thinking of canceling my car insurance, cos im not working at the moment, and don't use my car, so i think by saving my self money, too cancel cos its a waste, paying that money and not driving, the thing is i rang my insurance, and they said i can, but i will still have to pay month payments and when i join back with them, they will refund my money,, this doesn't make scene to me, can any one in the same position as me help please.

CoDy1

It sounds like the insurance company thinks you only want to suspend your policy instead of cancelling it. By cancelling it, you have no more ties to that insurance company.

If you cancel, you lose your bonus for that year btw.

oldyouth

The method they are suggesting is to suspend your insurance rather than cancelling it. What they intend to do is stop the cover from the date you return your cert and disc and allow you a return premium for the unused period, when you put it back on cover. It is a way of retaining your business. If you demand to cancel the policy, they have to give you a return there and then (subject to the payments you have cleared on your direct debit). They may be doing you a favour as suspension of cover may not incur penalty charges whereas cancellation might.

Ask them if this is the case

Edit; You are quicker than me CoDy1

heavymetalrock

im coming in to my fourth year with them and they said i will lose this year, i don't mind that cos i will still have 3 yrs bonus, i dont know which is better for my pocket? what do ye think, this is my first time to do this, dont know much about it.

oldyouth

It is down really to how much your really need the monthly cash and when you intend putting the car back on the road again. You will have to start at nil NCB after 2 years of not having a policy in force. If it is short term, the savings you make now will be swallowed up by not having that 4th year's NCB.

If you don't mind letting us know more, I can advise further

heavymetalrock

i pay 50 euro a month, i know its not a lot, put when u aren't working it is, what eles do u did to know?

oldyouth

€50 is a lot if you don't have it. I'm still working but got in excess of €1ks worth of bills today (car, dentist, school bills), hence the fact I have gargle taken.

Its down to maths really. €50 a month means you are paying roughly €600 a year for insurance. On a 3 yr no claims bonus that means the Gross premium is approx €850 (€850 -30% = €595) . If you lose out on that 4th yrs NCB, you are talking about a further €85 reduction. That is less than 2 months payments.

On the face of it, I'd say go for cancellation PROVIDING you think you will put the car on the road again within 2 yrs. Then again, if you don't think that will happen, well sell the car as well.

heavymetalrock

thanks for ur help, im very grateful one more question, if i cancel will they send me my pages with my 3yrs bonus back,

DannyBuoy

I was under the impression that a no claims bonus lasted 2 years after a policy cancellation, cant back that up with anything in black and white but I was in the same boat about 3 years ago and that was the case.

oldyouth

If you send your cert & disc back, they will cancel the policy. You can either ask them for your no claims bonus now or when you need it again. Don't let some robot in the insurance company tell you they can only do the suspend option. Ask for a supervisor and mention the 'Insurance Regulator' if you are getting nowhere. Most insurers are amiable enough but not all are as helpful as us old schoolers.

Best of luck with getting back on the road