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  • FIRST POST
    • QQQ
    • By QQQ 17th Oct 16, 2:44 PM
    • 248Posts
    • 12Thanks
    QQQ
    Changing car for a newer one and avoiding car insurance gotchas
    • #1
    • 17th Oct 16, 2:44 PM
    Changing car for a newer one and avoiding car insurance gotchas 17th Oct 16 at 2:44 PM
    Here is a question on behalf of my friend:
    I have an old car which I want to sell and buy a used newer one. It will certainly take a couple of months to sell the one and couple of months to find and buy a newer one. I am doing it first time here in the UK so here some newbie questions:
    1. Potential buyers will probably want to test drive of my old car, how this works insurance-wise?
    2. If I buy a newer car first and end up having two cars can I drive the newer one under insurance of old one?
    3. If not, can I use the same no claims bonus buying second insurance for second car?
    4. Or can I swap the cars under existing insurance not driving old one but still keeping it for a month or two on public road until it's sold?
    In other words, what is the most moneysavingexpert way to swap a car to making sure that insurance company will get minimum extra profit and ideally nothing?
Page 1
    • Herzlos
    • By Herzlos 17th Oct 16, 2:49 PM
    • 4,107 Posts
    • 3,589 Thanks
    Herzlos
    • #2
    • 17th Oct 16, 2:49 PM
    • #2
    • 17th Oct 16, 2:49 PM
    If you buy a new car before selling the old car, you can transfer the insurance over to the new one (with some admin fee or risk adjustment) and then normally add the old car on a temporary basis (for 1 or 2 weeks at a time, for a fee).

    The most MSE way, if you can get away with it, is to sell the old car privately before buying the new one.

    You may want to take a lower fee to trade in the older car if it's going to sit for a a while though, because whilst the old car is sitting on your driveway unused it's costing you in tax, insurance, and the MOT is running out. There's no point holding out for another £100 on the car, if it's going to cost you most of that money to keep it for that time, for instance.
    • AdrianC
    • By AdrianC 17th Oct 16, 4:18 PM
    • 12,113 Posts
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    AdrianC
    • #3
    • 17th Oct 16, 4:18 PM
    • #3
    • 17th Oct 16, 4:18 PM
    1. Potential buyers will probably want to test drive of my old car, how this works insurance-wise?
    Originally posted by QQQ
    They need to have their own insurance. They may have it through the DOC (Driving Other Cars) clause on their own policy - check. You could be prosecuted for permitting them to drive uninsured.

    2. If I buy a newer car first and end up having two cars can I drive the newer one under insurance of old one?
    Unlikely. If you have a DOC clause, you'll probably find it specifies the car has to be owned by somebody else than you. You may also find it needs to be insured anyway. Plus, you can't have a taxed car uninsured in its own right.

    3. If not, can I use the same no claims bonus buying second insurance for second car?
    You may find an insurer who'll mirror your NCB for you, but it's not guaranteed.

    4. Or can I swap the cars under existing insurance not driving old one but still keeping it for a month or two on public road until it's sold?
    You may well find your insurer offer cover for the second car at low or even no cost for a short period.
    • QQQ
    • By QQQ 17th Oct 16, 5:13 PM
    • 248 Posts
    • 12 Thanks
    QQQ
    • #4
    • 17th Oct 16, 5:13 PM
    • #4
    • 17th Oct 16, 5:13 PM
    They need to have their own insurance. They may have it through the DOC (Driving Other Cars) clause on their own policy - check. You could be prosecuted for permitting them to drive uninsured.
    Originally posted by AdrianC
    So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
    • Mercdriver
    • By Mercdriver 17th Oct 16, 5:21 PM
    • 598 Posts
    • 364 Thanks
    Mercdriver
    • #5
    • 17th Oct 16, 5:21 PM
    • #5
    • 17th Oct 16, 5:21 PM
    So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
    Originally posted by QQQ
    The consequences of a permitting conviction are quite far reaching. Apart from the 6 points and heavy fine, you would struggle to hire a car through mainstream rental companies as they generally won't hire to anyone with an insurance conviction.
    • AdrianC
    • By AdrianC 17th Oct 16, 5:25 PM
    • 12,113 Posts
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    AdrianC
    • #6
    • 17th Oct 16, 5:25 PM
    • #6
    • 17th Oct 16, 5:25 PM
    So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
    Originally posted by QQQ
    They may have DOC cover which covers them.
    They may have taken out a short-term policy.
    They may have taken out a policy, with the expectation of cancelling it if they decide not to buy the car.

    Do you really expect YOUR insurer to cover any random idiot who phones you and says "I want to drive your car", with no knowledge of their driving history or even if they have a licence?
    • Aretnap
    • By Aretnap 17th Oct 16, 5:26 PM
    • 2,428 Posts
    • 1,901 Thanks
    Aretnap
    • #7
    • 17th Oct 16, 5:26 PM
    • #7
    • 17th Oct 16, 5:26 PM
    So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
    Originally posted by QQQ
    It's a bit of a pain, but there are basically 4 options

    (1) You add him to your own insurance as a temporary named driver - depending on your insurer there'll likely be an admin fee to pay
    (2) You or he takes out a one day policy separate from your own policy - Google "short term car insurance" for some providers.
    (3) If his policy allows it, it may allow him to drive other cars not owned by him - but check as not all policies come with this feature. And be aware that it will only provide third party cover - there'll be no cover for damage to your car if he drives it into a tree
    (4) Drive it yourself with him in the passenger seat - not as good as a proper test drive of course, but it means he can at least listen for funny noises, see how it accelerates and turns etc.

    (1) and (2) are the best options, but they involve money (probably a few tens of pounds). You could ask him to split the cost - the more serious he is about buying the car, the more likely he is to say yes.
    Last edited by Aretnap; 17-10-2016 at 5:30 PM.
    • Aretnap
    • By Aretnap 17th Oct 16, 5:29 PM
    • 2,428 Posts
    • 1,901 Thanks
    Aretnap
    • #8
    • 17th Oct 16, 5:29 PM
    • #8
    • 17th Oct 16, 5:29 PM
    Unlikely. If you have a DOC clause, you'll probably find it specifies the car has to be owned by somebody else than you. You may also find it needs to be insured anyway. Plus, you can't have a taxed car uninsured in its own right.
    Originally posted by AdrianC
    While you're right that you can't generally drive two cars that you own on your own policy; if the overlap is a short one then many (not all) insurers will agree to cover both cars for a week or two at little or no extra cost.
    • AdrianC
    • By AdrianC 17th Oct 16, 5:35 PM
    • 12,113 Posts
    • 10,502 Thanks
    AdrianC
    • #9
    • 17th Oct 16, 5:35 PM
    • #9
    • 17th Oct 16, 5:35 PM
    While you're right that you can't generally drive two cars that you own on your own policy; if the overlap is a short one then many (not all) insurers will agree to cover both cars for a week or two at little or no extra cost.
    Originally posted by Aretnap
    If you'd read to the end of that post...
    You may well find your insurer offer cover for the second car at low or even no cost for a short period.
    Originally posted by AdrianC
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