# Cancelling car insurance policy - refund.



## WaterWater (4 Aug 2005)

I was changing my car this week and I phoned my insurance company about transferring my insurance and about cancelling my insurance with them.

If I were to cancel my insurance I was told that I would only receive back 25% pro rata of my car insurance for the year. (Policy started in January).

Why only 25%? If I had chosen to pay my premium on a monthly basis I could have simply cancelled the policy. I would have only lost a small fee for the option of monthly payment.   
Any views?


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## RS2K (5 Aug 2005)

Nasty.

I wouldn't expect a pro rata refund, but that sounds silly.

Why are you cancelling anyhow? Couldn't you just transferred cover onto the new car?

Consider consulting the Ombudsman and tell the Insurer you are doing so.


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## WaterWater (5 Aug 2005)

I eventually transferred my insurance on to my new car at no cost. The reason why I considered cancelling was because I got a very favourable quote from www.tesco.ie 
and I wanted to see would it be cheaper to cancel the existing insurance, get a refund and then take out the new insurance with Tesco. My broker wasn't very helpful so roll on the new year and hello Tesco.


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## RS2K (6 Aug 2005)

Tesco is Hibernian actually but I know what you mean.


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## harvey (10 Aug 2005)

WaterWater said:
			
		

> I eventually transferred my insurance on to my new car at no cost. The reason why I considered cancelling was because I got a very favourable quote from www.tesco.ie
> and I wanted to see would it be cheaper to cancel the existing insurance, get a refund and then take out the new insurance with Tesco. My broker wasn't very helpful so roll on the new year and hello Tesco.


 
How much cheaper ?


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## JPSaltee (21 Sep 2005)

If a policy is cancelled within the first year it is normal practice that you only receive a proportion of the premium, amount depends on insurer. If its not the 1st year you should receive a pro rata refund. Unless it is for a compelling reason I would not cancell a policy mid- term as you loose the part of that years NCB that you would have built up. 

Doing a permanent subsitution of vehicles: advise insurer/broker of make, model, engine size, value, reg and the time and date of change over. then send back your old cert and disc and receive new one with new registration


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