Home Changing renewal date

E

Emily123

Registered User
Messages
47
Our home insurance policy is up in the next two weeks. This time of the year really doesn't suit us as the car insurance is up at the same time, plus we generally take our holidays in June (when we can afford it!).

We've been with AA for 10 years. This year we got a very high quote from them which I'm not happy with (and which they're not budging on) so I want to move insurers, however we currently have our insurance on direct debit over 9 months, and if we moved we would, most likely have to pay upfront which we can't afford this month.

So I was thinking we might keep the current policy with AA for, say, 3 months, then move to someone else. This way we get to move the renewal date to a more suitable time and get the cheaper premium in 3 months time when we can afford to pay the whole amount upfront -hopefully!

Is this likely to be a problem and might we be penalised for it? Should I tell them now what my plan is or just change it in 3 months time? They get their 20eur commission in the first month so they probably don't really care??? The insurance co. is Zurich.
 
As you are not in your first year of insurance the easiest solution is to renew for the 12 months and then cancel the policy mid term after 3 months and then incept a new policy with whoever is giving the best cover / price at the time.

Be aware that while you will receive a pro rata refund from your insurer as you are not in your first year with them that the AA will have a service charge for mid term alterations so this will ultimately end up costing you more.

Consider going direct in future - no broker service charges that way.
 
Not 100% correct. if you were to have a clam in that period of time, there would be no refund. Also most brokers don't charge for cancellations which isnt a midterm alteration. Also direct companies will also charge a service charge for mid-term alterations. So just go with what you find cheapest and provides you with the best benefit - whether it be direct or broker!
 
Last edited:
simple request to change renewal date. it's done all the time for various reasons, to aid cashflow; to coincide with other renewals or to make budgeting easier. there should be no problem - simply ask. You may be charged on the new rates rather than the previosu renewal rates, but no matter it can be done without penalty.

I wouldn't tell them that the reason you are asking is because you want to leave in a few months time though!
 
Perhaps you could look at all your annual bills add them together and work out how much you need to put by every month to cover them. Perhaps also add a percentage for increase in prices. I did this a number of years ago and while it was hard for the first year (as I seemed to be paying the monthly direct debits and saving for the following year thus double payments) it is the best thing I ever did. Any time car, house medical insurance, tax, tv license is up the money is there. I never dread the bills coming.
I know it's what you specifically asked but I don't know how best you can go about altering your renewal date sorry.
 
Thanks everyone, I'll give them a call in the morning and see what they say. And thanks niceoneted, it's a good idea.

One other thing I should probably have asked in my OP - I'm currently basing the contents insurance at 70k - which is lower than last year but I'm thinking it might still be too high. We have an average 3 bed house, nothing expensive in it whatsoever, most things bought at the lower end of the price scale, if anything it could do with a new bathroom, kitchen etc.

Do you think 70k is too high and if so what would be the average contents insurance for a house like mine?
 
You must log in or register to reply here.
Back
Top