Cancelling Insurance

[Craggles]

I've paid my insurance for a year...

If I write to my company and cancel it before the policy ends, even before the policy is half way complete... can I expect 6 months worth of insurance money back, or any money back to that matter? (Policy canceled due to sale of bike)

This is just hypothetical at the mo, but needs thinking about!

Craig
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[NickD]

Usually you will find a cancellation/ refund scale somewhere in your policy notes, but it is obviously weighted in favour of the insurers, and depending on the state of your no claims/ need for cash, it's usually not worth it.
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[Ste]

Depending on how much they will give you it could well be worth keeping the insurance running so you've got another string of no claims bonus going.

[california_rookie]

Is it customary to pay for the entire year of insurance up front, or is this an isolated case?
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[Ste]

You can choose between paying it up front, or paying monthly (with slight interest costs).

[california_rookie]

Same here, although I've never heard of any of my peers paying for it up front.

Thanks, ste.
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[Bod]

I have recently cancelled my policy on the ZXR. I asked them how much I would get back and they said about 155 quid. Bear in mind, my poicy cost about 300.

[impaler]

I cancelled a policy last year that had run for just over 6 months and got practically nothing back, about 20% I think Sometimes it will tell you on the schedule how much you will get back at different stages. Like others have said, for the amount you would get back it might be worth just letting it run and clocking up a years NCB.
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[The Tot]

I was with Mitchell and Partners, and NO, i only had the policy running for 6 months (sold my bike) and they said, whatever funds that can be refunded is very negligable - she said that it was better for me to keep it running for another year (cept insurance was under my old's name and not under mine, so consequently, i won't have 1 yr NCB ). It just depends who you're with as some are willing to refund, but do read the small print. IMO, paying full sum works out MUCH MUCH cheaper than to have it debited on a monthly period.
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[Bendy]

I can depend why you're cancelling it though.

I've cancelled 2 policies with Bennets because they couldn't upgrade my policy to the new bike I had bought. In those cases, it was 'their fault' and I was refunded the correct amount rather than the reduced amount I would have got if it had been 'my fault'.

Which was nice.

[Mal]

The company I work for works the same way. Here's an example of the sort of refund:

Time on cover (months)	1	2	3	4	5	6	7	8	9	10	11	12
Payable	20%	27%	35%	42%	49%	57%	64%	71%	78%	86%	93%	100%

We cancel with charges if a customer sells their car, or decides to move the insurance to another company because it's cheaper, but if they change their vehicle to one we don't cover, then we'll cancel on a pro-rata basis.

Cheers

Mal

[Scooby]

I cancelled my NSR policy after 6 months ish. It cost me about £560 for the year, and in the end I got £120 back. This is because obviously £280's worth of the insurance had been used already, and with the remaining £280, I take it £160 which I didn't get back was a cancellation fee or something. Wish I hadn't cancelled it now, then I'd have near enough 3 years no claims rather than 1.
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[Craggles]

You have to cancel if you sell the bike though dont you?

Craig
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[Scooby]

Probably by rights yes. However, if the bike doesn't belong to you, you're not going to claim if it gets stolen are you? And you can't crash it can you? So you're not going to claim are you?!...

The only thing that the insurance company may notice is another person trying to insure the same vehicle. But this isn't going to cause any concern for them because numerous people can be insured on a vehicle, whether it's on the same policy or not. I also find it very doubtful they're going to try and contact you if they believe you've sold the vehicle to try and refund you money...
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[8316]

i tried choice quote on the net and motoryccle direct, and they both said after 9 months of paying then cancelling you policy, you have to pay the full whack. at 3 months you had to pay 50 percent.
hope it helps you
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[Jinx]

my car insurance I pay monthly and my bike insurance I pay yearly - if I were to cancel my car insurance all I do is tell them I no longer require it and stop paying - it is a little more expensive to pay monthly but not too bad.
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[Ste]

I'm not sure it is that simple, you have entered into a finance agreement to pay £x per month for 12 months. If you have your bike stolen and have a claim you're still liable to pay the remaining months installments despite the fact your insurance isn't valid anymore. So I would expect you have to ring them up, they will cancel some of the months payments but you'll have to pay them something anyway.