Car insurance for two months

tcawley29

Hi folks,

Leaving my current job this summer and heading abroad so I have to give back the company van.

What I'm wondering is how direct debit insurance works here.

I would like to insure my own car for a month or two.

Basically if I sign up to a direct debit insurance policy such as libertys one I see that I have to pay the first two months up front.

My question is when does the payment for month 3 come out.

Is it at the end of month one or would it be the end of month 2?

If it is the second option can I just cancel the policy and direct debit before month 3 starts?

Thanks

Tommy

biko

You can cancel an insurance policy at any time, or freeze it. There may be some fee incurred.

tcawley29

biko wrote: »

You can cancel an insurance policy at any time, or freeze it. There may be some fee incurred.

Thanks for the reply biko.

What I was wondering is if for example they say I have to pay 150 up front and 10 monthly payments of 30 euro when do the monthly payments normally start?
Hopefully at month 3 but Im just not sure of this.

Kimbot

Monthly start for your first policy with liberty in your first month and you dont pay the last 2 I think.

tcawley29

Ah pity.

Thanks anyways lads

colm_mcm

Allianz spread it out 12 payments over the 12 months.

grogi

tcawley29 wrote: »

Thanks for the reply biko.

What I was wondering is if for example they say I have to pay 150 up front and 10 monthly payments of 30 euro when do the monthly payments normally start?
Hopefully at month 3 but Im just not sure of this.

Pick the cheapest quote and cancel it when you don't need it. After two months you're likely to get ~70% back out of it.

Yes, you can cancel anytime. But you might still owe some money to the insurance company and if you just stopped the DD, you might find it difficult to get credit in future.

Sue Pa Key Pa

If you 'stop' a direct debit without a cancellation agreement from the insurance company, they have to invoke the cancellation clause under the policy to end cover. This is something you will need to declare to all potential insurers going forward.

tcawley29

Some excellent info here. thanks lads.

Yeah I had planned on cancelling with both the bank and the insurance alright.

Just trying to find a cheap way for a young driver to get insured for 2 months before I immigrate.

Must price Allianz but cant see them being cheap for me

CiniO

Most insurers don't apply any cancelation fees if it's your second or subsequent year on the same policy.

So best thing to do is to renew your previous policy if you can do it.

I.e. if you purchase new policy and cancel it after 2 months, with most insurers you will be only refunded between 50% and 70% of your premium.
However in case its not first year of your policy usually they would refund on pro-rata basic so after 2 months you should be refunded 5/6 of your premium (equivalent of 10 months cost)