The insurance sector has always been known for been incognito and the hidden costs and affairs do not do its reputation any good. In the recent developments in the sector, the insurance customers have been asked to think ahead before attempting to cancel their insurance policies, especially during the mid-term. It is seen that doing so could bring forth heavy cost implications. In a recent report from MSN Money, it is seen that most of the insurance customers have the notion that they will receive the premium proportion that applied to the remaining of the insurance cover period. However, this is not the case with the car insurance comparison sites in UK.
It is seen that most of the insurance providers in the UK calculate the refunds on the premiums based on the short-term rates system. This would mean that if an insurance holder is cancelling their policy during the third month, the person would be able to get the amount refund of about 50% from the annual premium. Similarly, a policy cancellation during the sixth month of the insurance premium would enable a person with only 20 percent of the refund while a ninth, tenth or the eleventh month cancellation could go even worse. Cancelling during the last few months of the policy would virtually leave the insurance holder with no amount whatsoever, thus proving that cancellation of the policy during the mid-term could bring forth a loss of premium.
Given such a scenario, it would be in best interests that one does not cancel an insurance cover during the mid-term. Furthermore, it was also noted that car insurance comparison sites have been making insurance holders pay more than what they should actually be paying. Another of the events that has developed in the UK automobile insurance sector is the introduction of new rules which could alter the face of the insurance sector altogether.
Get low cost insurance when you use car insurance comparison sites online to compare insurance quotes.