Can I sell my car during open insurance claim

itinerantnortherner

I recently had car accident and made a claim on my insurance. The car has been repaired and I have paid the excess so whilst the claim is still open, it's just a case of sorting out the liability.

However I have now decided to sell the car in order to get something cheaper to run. So can I still sell the car (and cancel the insurance policy) whilst there is an active claim on the policy ? Or would I be prevented from selling the car because of this ?

Alternatively as the policy is due to renew in mid-October, would it be better not to renew and sell the car in the meantime ?

Your advice would be appreciated.

dogbot

You can sell the car and you could cancel the policy but the full years worth of premiums are due because you made a claim. you will also be faced with cancelation charges. You would be better to buy your new car/sell the old one and stay with the same policy untill renewal, then shop arround. There may be an amendment charge to pay but this is usualy less than a cancellation charge. You can't just keep the policy running on a car you have sold.

StephenMarsh

Nothing to stop you selling the car however if you are getting a new car (all be it smaller) to replace then I would look at adding the new car to your existing insurance until the renewal date in October and shop around then for insurance (remember to include the claim and if liability isnt established it needs to go down as a fault claim)

With regards to canceling you can (although I wouldnt advise it) but as liability isnt established you wouldnt be eligiable for a refund and if it goes against you, you would be liable for the full years insurance. With this in mind again if your purchasing a replacement vehicle add it to your existing policy until renewal

itinerantnortherner

Thanks for the advice so far.

The insurance company has so far said unofficially that the other party is liable but that is not an official position.

As I have no experience of this, what would be the situation if the claim is not closed by renewal date - would saying that a claim is still open be detrimental to the price of my renewal ? Would I have to stay with the same insurer ?

Also would adding another car on to the policy (which would be of a lower insurance group) and removing my current car mean that I could get a refund of some of the premium as I paid upfront when I started the policy last year ?

StephenMarsh

itinerantnortherner wrote: »

Thanks for the advice so far.

The insurance company has so far said unofficially that the other party is liable but that is not an official position.

As I have no experience of this, what would be the situation if the claim is not closed by renewal date - would saying that a claim is still open be detrimental to the price of my renewal ? Would I have to stay with the same insurer ?

Also would adding another car on to the policy (which would be of a lower insurance group) and removing my current car mean that I could get a refund of some of the premium as I paid upfront when I started the policy last year ?

If the claim is unresolved by the renewal date you will have to inform any insurers you are getting quotes from its also possible your current insurer will reduce your NCD down until liability is established.

If it costs you more at renewal and later the claim goes in your favour you would be able get your reinstated NCD and retrospectly have your insurance reduced back down with effect form the renewal date.

As for a refund by reducing your vehicle its unlikely your current insurer will issue any refund until liability is esteblished and they have recouped there costs but again if at a later date it goes in your favour then you would be eligiable for the refund.