Car Insurance - possible to take out short-term policy for 3-6 months?

PoundMan

Registered User
Messages
19
Hey guys, I am due to buy a car in the next week or so.
If insuring a car now at the moment, would it make more sense to just take out short-term 3-6 month insurance policy in the hopes that the cheaper rates will be rolled out later in the year? There was new reports earlier this month with headlines such as "Car insurance premiums to fall in the 'near future' - RTE" or "Insurance firms may cut motor premiums this year - The Irish Times"
 

ginslia

Registered User
Messages
61
I don’t think you can get a policy <1year. But you can cancel mid-way through the policy and look for a refund of the time left less whatever admin and levies the insurance company come up with, to take advantage of a better deal elsewhere.
If premiums are going down generally, you will be able to get the lower rate when you renew.
 

odyssey06

Registered User
Messages
3,305
As noted you can cancel although there would be cancellation free deducted from your pro-rata refund.

Do you have a full NCB? If you don't it would be better to complete out the year so that at next renewal you have another year NCD under your belt.
 

peteb

Registered User
Messages
1,725
As noted you can cancel although there would be cancellation free deducted from your pro-rata refund.

Do you have a full NCB? If you don't it would be better to complete out the year so that at next renewal you have another year NCD under your belt.
Be careful there. In most cases its not pro-rata less a fee. Its percentage based. So cancel anywhere from day1 to 3 months in and its 75% refund etc. It will be in the policy wording.
 

odyssey06

Registered User
Messages
3,305
Be careful there. In most cases its not pro-rata less a fee. Its percentage based. So cancel anywhere from day1 to 3 months in and its 75% refund etc. It will be in the policy wording.

Ah I see that now e.g. Aviva have 'short period rates' for cancellations in first year of policy.
"If you cancel the policy during the first year, the refund will be based on our short-period rates."

Period for which policy cover operated in the first year v Percentage of yearly premium that could be refunded
  • Not more than 21 days 80%
  • Not more than 1 month 70%
  • Not more than 2 months 60%
  • Not more than 3 months 50%
  • Not more than 4 months 40%
  • Not more than 5 months 30%
  • Not more than 6 months 20%
  • Not more than 7 months 10%
  • 8 months or over 0%
 
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