Cancelling car insurance - Keep no claims??

jimpix12

Hi guys

I am paying Direct Line my car insurance by direct debit. I am looking to get a new car next week, and have already tried to get a quote from them, but they won't insure it. Apparently they don't insure convertibles much???

Anyway I was just wondering what would happen if I cancelled the policy. I guess I'd have to pay the remainder of the quote (I'm 6 months into a 10 month policy), which isn't really a problem if I get an extra year's no claims from it - but is that how it works? Can you transfer the policy to another insurer and on a different vehicle? (I guess not...). Or should I just not cancel the policy and keep paying until renewal time, and get a new years' no claims?? Is it illegal to insure a car you don't drive/own?

Or if I cancel will I not get any more no claims bonus AND have to fork out to pay off the policy? It's ridiculous they don't insure convertibles when every other company I've approached does. How does this usually work? Thanks.

lisyloo

I don't think you will you get your extra no claims if you cancel.

I know it's annoying but at the end of the day they aren't under any obligation to continue to insure you.
You need to factor in the costs of this when you are looking at different types of cars.
If you really want a convertible then this is an extra cost.

shelly

You only get NCB for a full years policy. If you cancel now you will lose the NCB built up so far this year.

Sorry I'm not 100% sure if you would have to pay the remainder of the policy or if they will just cancel it, though I think you will have to pay cancellation charges.


HTH

jimpix12

Would it be advisable to continue to insure the car? My policy expires in Feb 09. If it isn't illegal to insure a car you don't drive/own, then I may as well do that, seeing as it's only cost an extra £180 or so (at my age an extra year's NCB saves more than that!).

The only issue would be, I think, if the new owner doesn't insure it and crashes the vehicle then drives off, will it come back to me? I won't be the registered keeper at that point.

Quentin

You cannot insure it if you have no interest in it.

jimpix12

At the risk of sounding rather pig ignorant, I can't see how they'd know I had no interest in it. At worst, I could say I had forgot to uninsure it.

Quentin

You asked the question. I gave you the answer. If you don't like the answer, why did you ask?

You also saw the problem - the new owner may not insure it, but get involved in an accident!

Plus you might make a claim anyway between now and next February.

jimpix12

Because that answer was clearly not quite right. The vehicle is traced to the registered keeper, not the insurer.

Could it be another MoneySaver with a chip on their shoulder? Christ alive! Anyway, thanks to everyone else. As for now I think I'll cancel.

lisyloo

As Quentin says, the new owner might have an accident.
Under legislation, your insurance may be obliged to pay out if they are uninsured (I think it's the Road Trafic Act that obliges insurers to do certain things).

You would then lose your no claims AND have an accident to put down as a "fauilt claim".
Not your fault I know but that's the terminology used for a claim where they can't get the money back from a 3rd party.
It goes against you so won't do your insurance any favours for 3 years.

Sorry, I don't mean to sound harsh but you need to consider these things up front.
Either at the time you change your car or at the point you select your insurer.
If you go for the cheapest insurer they might not be the most flexible.

If you really want a convertible then why don't you just pay up?

It's really a cost associated with getting a "no frills" insurance policy rather than a more costly but more flexible one.
It's the same with flights. If you get a "no frills" flight you often get very little help if something goes wrong or you need to make amendments.

I think you simply have to look at this as a cost of chaning your car.
You mght not think it's fair, but restrictive terms are very common on hotel bookings, flights, train tickets etc.
They simply cannot offer the flexibility at rock bottom prices.

Quentin

spunko2010 wrote: »

Because that answer was clearly not quite right. The vehicle is traced to the registered keeper, not the insurer.

Could it be another MoneySaver with a chip on their shoulder? Christ alive! Anyway, thanks to everyone else. As for now I think I'll cancel.

Ignoring your unnecessary, blasphemy, I reply to your post for others benefit, (a post like that deserves to be ignored).

spunko is wrong.

As I pointed out, if he insures a car, and that car is involved in causing damage whilst uninsured by its current owner, then spunko's insurance becomes liable for compensating any third parties involved.