Car insurance - what to do when selling a car a month before insurance runs out?

16
Posted 31st Oct
So usually I time my selling and buying around the time my insurance runs out OR I just carry on my insurance with the same company.

What would be the scenario when I sell Car A with 1 month remaining on Insurance A, but then buy a replacement, Car B, and go to Insurer B?

If I call up to cancel Insurance A, will I have to pay a fee? Or, can I let the term run out a month and not tell the company?
Community Updates
Ask

Groups

16 Comments
"...If I call up to cancel Insurance A, will I have to pay a fee?"

What does your insurance policy contractual documentation wording say will happen?

"...Or, can I let the term run out a month and not tell the company?"

If you like.

Will you be using your existing (old insurer) policy information as evidence of any no claims discount to the new insurer?
Might have to pay a fee and could be cheaper just to let it run down, most times they will just add the new car to your policy might cost a little more though. If you are building up your no claims bonus you will need to ask what happens to that as you won’t have completed the year if you cancel.
Fee is unlikely to more than last months instalment, if any fee at all.

I buy a car regardless of when insurance expires, it’s never made much of a difference to over all cost.
Just change over cars, do not stop your policy as you will lose a years no claims.
Call and find out how much to change over cars, some companies charge a £35 fee to change anything plus the difference
in car rates
I don't think you can have maximum no claims on both cars at the same time though?
From what I understand it’s an offence to insure a car twice. Irrespective of if you plan to cancel with the current insurer, you must notify them you no longer own the car.
bigwheels31/10/2019 19:56

Just change over cars, do not stop your policy as you will lose a years no …Just change over cars, do not stop your policy as you will lose a years no claims.Call and find out how much to change over cars, some companies charge a £35 fee to change anything plus the difference in car rates


+1 unless you’re worried about premiums bumping up when it’s time to renew
jbecker31/10/2019 20:05

From what I understand it’s an offence to insure a car twice. I …From what I understand it’s an offence to insure a car twice. Irrespective of if you plan to cancel with the current insurer, you must notify them you no longer own the car.


You can have 2 policies on the same car. In the past mini cab drivers had third party hire and reward for work and fully comp in case it got nicked. You break the law if you claim on both.
jbecker31/10/2019 20:05

From what I understand it’s an offence to insure a car twice. I …From what I understand it’s an offence to insure a car twice. Irrespective of if you plan to cancel with the current insurer, you must notify them you no longer own the car.


Don’t think op was planning to insure same car twice just let the insurance on the old car run it’s course and lapse and take a new policy on the new ca
bigwheels31/10/2019 20:34

You can have 2 policies on the same car. In the past mini cab drivers had …You can have 2 policies on the same car. In the past mini cab drivers had third party hire and reward for work and fully comp in case it got nicked. You break the law if you claim on both.


Just been doing some research! You’re right, I think the issue is insuring the car when somebody else owns it. I was in a similar situation myself recently and was advised I must stop the old insurance as it was an offence. I guess if the person who bought the car didn’t insure it and my policy was still in place I would become liable as I’m technically still insuring the car.
They don’t charge a fee for all amendments to a policy and they might not charge in all circumstances. I would change the policy to the new car, cancelling will loose 1yrs no claims, but depending on how much you have it won’t make much difference anyway to the renewal.
as far as i am aware, you are obligated to tell your insurer that you have sold the car. we normally tell the insurer we have sold the car and that we have a new one. they change the policy to the new vehicle for the remaining months and charge an adjustment premium for the remaining months for the new car. there isn't any fee to change vehicle details. then when the policy renews, we do a market compare on the new car to see if we can get a cheaper premium. this is better than cancelling the previous policy and take out a new one for the new car as then i think they will charge you a fee for leaving early.
CANCEL IT
dailyrecord.co.uk/new…840

This poor guy was left in hell after not cancelling his insurance on a bike, the buyer went on to have an accident that killed him, because in the eyes of the law and insurance the seller allowed the buyer to ride it on his insurance and left him liable for the sum of 10's of thousands.
I remember a similar issue happened with my dad. He sold a car without cancelling the insurance and someone made a fault claim on his policy. Was a real faff getting the claim rejected but think we managed it in the end via DVLA proof of sale
harlzter31/10/2019 22:45

CANCEL …CANCEL IThttps://www.dailyrecord.co.uk/news/scottish-news/scots-biker-insurance-hell-after-4141840This poor guy was left in hell after not cancelling his insurance on a bike, the buyer went on to have an accident that killed him, because in the eyes of the law and insurance the seller allowed the buyer to ride it on his insurance and left him liable for the sum of 10's of thousands.



not a lot of substance there such as exact laws quoted etc, tho probably one the insurers would "try it on" with can't see how failing to cancel insurance would nullify the sale process let alone equate to permission.
It would be very dodgy to hold him liable any more than holding someone liable for a bank robbery if they sold a car which was used as a getaway vehicle..
maddogb31/10/2019 23:10

not a lot of substance there such as exact laws quoted etc, tho probably …not a lot of substance there such as exact laws quoted etc, tho probably one the insurers would "try it on" with can't see how failing to cancel insurance would nullify the sale process let alone equate to permission.It would be very dodgy to hold him liable any more than holding someone liable for a bank robbery if they sold a car which was used as a getaway vehicle..


Even so the hassle and stress of fighting it is not worth the risk.
Post a comment
Avatar
@
    Text

    Discussions

    Top Merchants