Insure a happy ending

If the cost of your car insurance is driving you to despair then it could be time to consider switching provider.

According to MoneyExpert figures car insurance is the joint most popular service to switch along with electricity and credit cards. In the last six months 5.9 million of us changed insurer. If you’re planning on switching then there are couple of things need to focus on when making the change.

Ending it all

It might be that your insurance is leaving you out of pocket or perhaps you’re just unhappy with the service but there are in fact a couple of ways to go about cancelling your policy.

Many insurers will require written confirmation that you intend to cancel your policy and some will require you to send back a hard copy of your policy with this letter. It’s possible your insurer will allow you to cancel over the phone, so check the details.

It’s important to remember, if you’re paying by direct debit, simply by cancelling this will not mean that your insurance policy has been ended.

Paying double

When you cancel it’s important to have a clear idea about when you want your new policy to start from so that you cancel your old policy to coincide with this date.

Remember that driving without insurance is illegal and the cost of being involved in an accident whilst uninsured could be horrendous.

Paying to end it

Of the 190 or so car insurance policies available in the UK around 160 of them will charge you for cancelling.

This is because policies constitute a year long contract with your insurer. To leave early is technically a breach of contract and the insurer is entitled to charge for the administration costs of this cancellation. The majority of policies charge £10 for this process but you could find this going as high as £60 in some cases.

Despite the charge you will have the remainder of your premium returned to you. So if you paid £300 for your cover and only used the provider six months, £150 would be returned to you, minus any fees.

Round the clock cover

Once you’ve informed your insurer of the decision to cancel and specified a date you can get on to the business of arranging a new policy. Remember to leave yourself plenty of time to do this so that your car is always covered.

Given that the majority of insurers are now listed on price comparison sites, or have web sites or automated phone systems themselves you should be able to arrange cover at any time of the day. Remember that buying online normally comes with a discount of at least 10%.

Making your mind up

When it comes to choosing your new insurer, remember that comprehensiveness is just as important as price when you switch. There’s little point having a policy which doesn’t provide you with the peace of mind, so ensure that you read through the policy details before you sign on the bottom line.

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