Short term car insurance question

artvanderlay

Hi,


I'm looking to get a cheap runaround car (€500, 1L) but I might be leaving the country in September, so will only need insurance for 3-4 months. Is it possible to do this? I'm not driving at the moment, and I last drove in June 2016, so coming up to 2 years off the road. I have one year no claims bonus, but does this expire if I take time off driving like I did?


Probably quite basic questions, but forgive my ignorance! Thanks for any help.

bazz26

Insurance policies usually run in 12 month periods only but you could take out a policy now and cancel it when you plan to travel. You will get a partial refund less an admin fee.

coylemj

bazz26 wrote: »

Insurance policies usually run in 12 month periods only but you could take out a policy now and cancel it when you plan to travel. You will get a partial refund less an admin fee.

After the first full year of a policy, you get a pro rata refund less an admin fee if you cancel the policy before it's due to expire but if you cancel in the first year of a policy, they will screw you.

The bottom line is that they don't want the type of business the OP is proposing.

colm_mcm

Just pay monthly then cancel. Allianz do 12 monthly payments without an upfront payment. Most companies do 8/10 payments and an upfront payment.

artvanderlay

Thanks lads. I'll give it a go and see what happens.

Del2005

coylemj wrote: »

After the first full year of a policy, you get a pro rata refund less an admin fee if you cancel the policy before it's due to expire but if you cancel in the first year of a policy, they will screw you.

The bottom line is that they don't want the type of business the OP is proposing.

I've only ever had 1 year policies on all my cars and bikes. I know some companies are now offering 2 year policies but I've never heard of losing all your money when you cancel a policy mid way regardless of how long you've been with the company. You do get loose if you cancel close to the end of the policy but not after 3 or 4 months like the OP is planning to do.

coylemj

Del2005 wrote: »

....I've never heard of losing all your money when you cancel a policy mid way ......

I never said you'd lose all your money, I said they would 'screw you'.

Liberty and Axa will only refund 50% of the premium after 4 months so you will end up with 4 months cover for the price of 6 months.

Del2005 wrote: »

.... regardless of how long you've been with the company.

I said it applied only in the first year of a policy.

coylemj

colm_mcm wrote: »

Just pay monthly then cancel. Allianz do 12 monthly payments without an upfront payment. Most companies do 8/10 payments and an upfront payment.

It's not necessarily as simple as that. A monthly payment scheme often involves you taking out a loan with a third party finance house to cover the annual premium (which they pay to the insurance company) so you owe the money to a third party and handing back the cert and disc doesn't mean you can simply walk away from the loan.

colm_mcm

That’s true. It’s usually brokers that do that AFAIK. I did mine with premium credit one year so it would have been the type of setup you mention.