Insurance question(s)

Boskowski

My motor insurance is up for renewal and will expire tonight at midnight. My renewal quote for my existing policy has gone up by 30% and I will change. But in any case I have been sloppy with my money this month and I will only have the money in my account on Thursday and only on Thursday I will be able to make a payment for a new policy.

So here is two questions then:

I imagine I will be covered from the very moment I act on one of the quotes by making a payment on the phone? The policy will be in force then, correct?

Secondly, does that mean I have no cover tomorrow (and obviously can't drive) or is there a grace period on the existing policy?

L1011

Some insurers have a grace period on the existing policy but solely on the basis that you are renewing with *them*. Believe there was a temporary cert for 12 days included with my Quinn renewal quote last year for this.

But unless otherwise stated there is no grace period. And yes, most insurers can cover you from the instant you pay them / agree to pay them.

Keith C

no grace period if you change insurance companies, you'll have a gap in cover from tomorrow till you take out insurance on thurs, as insurance companies wont backdate cover.
Don't drive the car till thurs (or whenever you get new insurance sorted)
not worth the risk.

Del2005

I'd be wary of driving even if I did have a grace period on a policy. I wouldn't trust any insurance company to cover me if something happens and they've heard nothing from me and don't have any of my money.

I wouldn't assume the policy becomes active straight after you've taken it out, though I can't see why it wouldn't. I'd make sure to ask just in case.

Wishbone Ash

I was under the impression that there was a 10 day grace period regardless of whether you were changing companies or not.

Zube

Wishbone Ash wrote: »

I was under the impression that there was a 10 day grace period regardless of whether you were changing companies or not.

My last renewal came with a message saying "There's no f#@£;ng grace period, so don't give us any of your f#~%*&ng bullsh%$£!"

or words to that effect in Lawyerese.

Gumbo

Wishbone Ash wrote: »

I was under the impression that there was a 10 day grace period regardless of whether you were changing companies or not.

nope, no such thing as grace periods in insurance anymore, unless you renew with the same company.

Barr

kceire wrote: »

nope, no such thing as grace periods in insurance anymore, unless you renew with the same company.

Even if you go to renew with the same company they will not be a grace period -it does not exist with motor insurance.

To answer the op's other question , you can go on cover over the phone with most comapnies which will give you instant cover.

CoDy1

Barr wrote: »

Even if you go to renew with the same company they will not be a grace period -it does not exist with motor insurance.

Don't know about that.

If I renew a motor policy a week after the renewal date, I'm renewing that same policy from the renewal date with same policy no. etc.., so in theory that week is in grace.

Most companies policies I deal with will lapse automatically after 14 days if no payment received.

oldyouth

Barr wrote: »

Even if you go to renew with the same company they will not be a grace period -it does not exist with motor insurance.

To answer the op's other question , you can go on cover over the phone with most comapnies which will give you instant cover.

Barr is correct. Some Insurers/Brokers will accept payment a few days after renewal and send out the Cert & Disc that is already on file, showing the original period of cover. However, it is A loose practice and open to risk. If you have a serious accident 3 days after the original renewal date, try explaining that you were on your way in to pay the premium and see how far you get.

CoDy1

Fair enough, I'm speaking from a brokers perspective and in that case the insurance company would assume the premium to be paid to the broker.

It is a grey area, even though people get 21 days to pay or go elsewhere the majority of people still leave it till the last minute or a day or 2 late and it will always happen.

Boskowski

Ok, thanks all for your advice.

It's just that a colleague told me that virtually every motor policy has a grace period for renewal purposes and I thought I'd get away with it for one day. Based on the opinions here then I didn't chance it.