Cancelling/ Changing car insurance.. whats our rights?

Found 11th Oct 2010
HI, my girlfriends on M&S car insurance and is currently driving a car woth £1000 we have just bought a new one which we are collecting the end of the month and have tried to change the car on the policy but they have refused as the car is too worth too much (£10,000)

They have said that they would have to cancel the policy (and loose the no claims) and pay them £260 plus a £75 charge and a £70 charge..

Is there anything we can do? Im not hopefull but worth the ask..

The policy runs for 4 months and she is paying £30 a month.. would it be easier to just let the policy run and take a £120 hit and get a new car insurance to run alongside it?
Community Updates
If thats what they say you can't do much about it
Why would you lose the no claims? If you had for example 3 years no claims before your last renewal you would keep your 3 years no claims (unless you have made a claim and had unprotected no claims bonus). The only no claims you'd lose would be the months since your last renewal.

If you pay monthly you can cancel your insurance whenever you want and pay no penalties because you have paid for the months you have had your insurance. The only reason you'd have to pay fees and charges would be if you've made a claim since your last renewal date with them. Is this the case?
Edited by: "Scouser78" 11th Oct 2010
how many years no claims does she have, I'd cancel then go elsewhere if she has some years no claims

I work for a major car insurance firm so might be able to help.

The £260 sounds like what we call Time on Risk, I take it the policy was paid via Direct Debit. So in effect the insurance company have 'loaned' you the money for the policy so this charge is too be expected. What you need to do is find out what these other charges are for as they should only be charging you 1 cancellation fee as per their terms and conditions, so either ring them or read the policy booklet, I would also ask them if they will reduce the cancellation fee as they are cancelling the policy as they cant cover you, they may say no but push hard as you have nothing to lose, it is something our company would do as a gesture of goodwill.

Now as for you no claims your insurance company can't take this away from you unless you have a claim, but then you would only lose 2 years max. What they are doing is playing hardball and saying until you pay the outstanding amount they wont release proof to your new insurer, which they can do sadly. the only option is to see if your new insurer will 'mirror' your no claims years as a gesture of goodwill as there is a fight for new customers in the insurance sector, again speak to your new potential insurer and see what deal they will offer you.

As for the last point it is ilegal to have insurance on a car you no longer own so this may not be a good idea and you also cant use your no claims on 2 cars, you may get lucky and your new insurer may not check and just accept your word (we check 1 in 3 random policies for ncb proof)

Hope this helps

Any other questions, post them on here and I will do my best to help


yes apologies it would only be the no claims on the current policy she would use (8 months worth)

Thing is if we cancel we would loose £400ish in cancellation fees

Losing the 8 months is standard as you'd have not completed a full year on that years policy, therefore you can't have a years no claims if you cancel.

With regards to the £260 I worked in motor insurance years ago and haven't heard of Time on Risk before, but crystaldvd seems to have explained it well enough. Must be something that's been introduced in the past few years. I'd definitely ask the insurance company to point out where it was in the t&c's when you took the policy out.

Also, with regards to the company not looking to insure you as the car is worth too much for them to cover I would ask them to advise you where in their policy booklet it mentions it. I only say this as it happened to my wife, she went through Swinton insurance who covered her on her used car which she was looking to part ex for a new one. When we called Swinton to advise them of her plans they advised she couldn't have a new one on her current policy as the insurance company Swinton used (Swinton are a broker and will have a field of insurance companies they take the policies out through) did not cover new cars. We were advised to cancel our policy and take a new one out with them which would leave us short changed by close to £400. A swiftly typed letter by myself asking Swinton to point out at what time our policy could never be upgraded to cover a new car resulted in cancellation and refund of all funds outstanding. It was a bonus I had knowledge of the motor insurance field.

It's always worth asking.
Time on risk is fairly new and is the underwriters charge for each day you are on cover

Most insurers now use many different underwriters to provide you with cover and each have their own criteria for providing that cover, which means if you change details mid term there is no guarentee you will be covered, again this is all above board.

But for this reason you should argue the cancellation fee and get it waived!!
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