09 Mar 2015

A question about : "Free insurance" with new car

Hubby and I have ordered a brand new VW which is being delivered on Sunday. It's the first brand new car we've had for about 20 years, so I'm a bit in the dark about what to expect these days. The biggest What do I do? is to do with the insurance, and I'd appreciate some help from people more clued up about this than me.

We currently have Aviva Multicar insurance. His ancient Golf and my decade-old Mini are both on it as fully comp, and it comes to Ј420, which we pay in full annually. I don't doubt for one minute that adding a brand new car to it will increase that, and I'm assuming I'd just pay the balance if I decide to add the new car to it, or be refunded if I remove the Mini from the policy. Is that right?

The dealer told me that the new car comes with a year's free insurance, presumably via VW's insurance arm. Even if I decide I don't want the policy, I get a week's free insurance to give me time to sort my own cover. Does anyone have any experience with VW insurance?

Obviously, taking the free insurance is going to be cheaper than adding the new car to the Aviva policy. If I go ahead with the free insurance, will that then convert the Aviva policy to a single car policy?

Lastly, I guess the question is Is it worth it?. People's pros and cons of these free policies would be really helpful.

Best answers:

  • Volkswagen Insurance is underwritten by Allianz, the policy docs are available on line for you to view.
  • Check the excess payable and any mileage limits.
  • Adding a new brand new car may not increase the premium, I recently had a quote and it was lower than for my 10 year old car. The cost of damage to your own car is relatively minor compared to what you can do to other vehicles / property / people. The first party bill for this was a drop in the ocean compared to the third party claim http://en.wikipedia.org/wiki/Great_Heck_rail_crash
  • Big thanks to both Molerat and Dave from Aviva. I'd never even considered that insuring a new car could be cheaper, and Aviva have quoted and proved (On this occasion at least) that it is. Lesson learned
  • Cheaper than free??