If you already have car insurance and your insurer refuses to cover the vehicle you are thinking of buying/have already purchased or simply hikes the insurance premium up to some astronomical amount - don’t panic. Most insurers are selective in the cars they will provide cover for and you may even be part of a special scheme with discounted premiums.
If they refuse to insure your new vehicle, you should be entitled to what is known as a “Pro-Rata” refund i.e. you will only be charged for the period your previous vehicle has been insured. For example – you paid £365 up front for the annual car insurance policy on your previous vehicle. You change your vehicle some 200 days into the policy and they refuse to insure your new vehicle. They should only charge you for the period your old vehicle was insured i.e. £200. You should get the balance of your annual premium refunded to you (£165) which you can use towards the cost of a new policy for your replacement vehicle.
You should be aware that any refund (if any) may be a little different if you pay your premiums monthly.
If you are offered anything different, challenge them! After all, it isn’t your fault!
Similarly, if your insurance was arranged through a broker and they try to take a fee, challenge them! Offer them the opportunity to provide a quote from an alternative supplier. Don’t simply pay fees without putting up a fight. It’s worth a try!
The phrase “Company Policy” simply means that someone, somewhere decided to make some extra profit by charging fees. Anyone making that decision can just as easily “revoke/make an exception” – don’t worry that they may not have done it for anyone else, you are only concerned with your own circumstances.
Be polite, be firm, choose your words carefully and be clear in what you want. Without trying to be antagonistic, don’t be afraid to ask to speak to someone in higher authority.
If your present insurer will cover your new vehicle, albeit at a much higher premium, try shopping around a little and if you find their premium is significantly higher than the rest, try going back to them and negotiate a reduced premium. If you then decide to cancel your policy with your current insurer, you will be charged cancellation fees and possibly an administration fee which are unlikely to be waived, so make sure you check your policy cancellation charges and make sure that is worth changing insurers immediately or simply waiting until your policy is next due for renewal.
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