When your car is impounded it can be a very stressful time. For some it is something completely new, and the process you go through can be quite daunting. On top of this, some policies can be extremely expensive. But what are the dangers of cheap impounded car insurance?
Using online only providers
Trying to get cheap impounded car insurance can end up costing you more. One way this can happen is using a insurance provider that is online only.
These policies tend to work out cheaper than from a broker. However, when you take your documents to the impound to release your car, it is likely that the police will want to call the insurer or broker. This is to confirm the cover is correct and that they know about any past or pending convictions.
These online insurers sometimes do not provide a contact number, Therefore the police will not be able to confirm the cover is correct. As a result they will refuse to release your vehicle and you may have to take out another insurance policy with another company.
Always check the company you purchase impounded car insurance from is contactable, otherwise it could cost you a lot more.
One Day Insurance
Another way people like to get cheap impounded car insurance is to buy cover for one day only.
From our experience, the police will unlikely be satisfied with one day’s cover only. This is because you are at a greater risk of then being uninsured if you cannot sort insurance out by the next day. As a result they may refuse to release your vehicle. Again this will mean that you will have to take out another policy costing you more overall.
Policy will tell you how many days minimum they require for you to release your vehicle. This may depend on the police at the impound, but it is usually 28 or 30 days cover.
Providing the wrong information
When taking out impounded car insurance, some try to give false information to help lower the cost of the premium. This can include false statements about who was driving, or any previous convictions.
When the police confirm cover they will always double check any information they have and make sure it matches what the insurer/broker know. If it does not match, you may be liable to pay out more money. This is because when the insurance is quoted again with the correct information the premium will likely rise. You will therefore have to pay the difference.
Due to the nature of impounded car insurance, many insurers don’t offer any refunds once the policy is set up. It is essential that we have all the correct information at the beginning. This is to make sure the policy will be able release the car.
If you have any questions about our impounded car insurance then click here or call 0161 388 2537.