Scrapping - What happens to insurance?

CGDS

My car recently failed its MOT. Failed on emissions due to the engine misfiring. It's an old car, so it is not cost effective to put it in for engine work as the cost of labour etc will be greater than the value of the car. I have decided that I think I should scrap it.

My problem - I have around 4-5 months left on my insurance (which is already paid as I paid in full) and I want to earn my extra year NCB. Will scrapping my car void the insurance and in turn I lose the years NCB? Am I best just to SORN the car until the insurance runs its course? I do not want to cancel my policy, as have paid I dont mind riding it out just to get the bonus. The most important thing in this case is the additional NCB.

As it stands, I do not have another car lined up so I cannot simply just transfer my insurance to another vehicle. I will be looking for a new car asap, but with finances etc I imagine I will be looking closer to the New Year before I can get one.

Thanks for your help

Hintza

If you think it will save you money the just scrap the car (you can not declare it SORN if it scrapped) and just let your insurance run.

CGDS

Sorry I was unclear there. I meant that as two separate options. Either scrap or SORN. I still have 4 months tax on the car, If I do not drive the car (as it will have no MOT) can I just leave it parked without SORN?

Do I need to cancel my insurance policy if the car goes to a scrap yard?

Gloomendoom

CGDS wrote: »

Sorry I was unclear there. I meant that as two separate options. Either scrap or SORN. I still have 4 months tax on the car, If I do not drive the car (as it will have no MOT) can I just leave it parked without SORN?

Do I need to cancel my insurance policy if the car goes to a scrap yard?

You have three options... keep it taxed, SORN it, or scrap it. The latter two would enable you to get a refund if you hand the tax disc in. You would also get some money back if you cancelled your insurance. IIRC your no claims bonus will stay valid for two years.

There is nothing to stop you keeping the car and park it up as long as you aren't going to keep it in a public place.


Four options... you could sell it.


Edit: Yes, I think you would have to inform your insurance. They like to know about any changes to the car. Squashing it into a three foot cube is quite a drastic change.

CGDS

Haha yeah that is a very valid point. So if I want to gain the extra NCB I have to keep the car? If I keep the road tax on it is it ok to keep in a public place?

Do I have to declare anywhere that I will not be driving it as it will have no MOT next week? I can't stress how much I would prefer to keep the insurance going to build on the NCB.

cyclonebri1

In the real world, I very much doubt any insurer would check to see if your policy covers a recently scraped car, the only time this could cause problems is if you claimed on a car before the end of the "current" years ins, assuming you had insured another??

Scrap the car and do whatever, the insurers don't need to know unless you go anal, and cough up

CGDS

No insurance on another car, so technically I will not be in any accident that involves my insurance - therefore no possible claim. I just assumed the insurer could be automatically informed considering the insurer can obtain every other bit of information required electronically.

King_Nothing

Ideally you really shouldn't hold insurance for something you have no insurable interest in, so your scrapped car in the middle of a scrapyard is of no interest to you, and so such your insurer should be notified. Your best option is to keep the car until, then get it scrapped.

Gloomendoom

cyclonebri1 wrote: »

In the real world, I very much doubt any insurer would check to see if your policy covers a recently scraped car, the only time this could cause problems is if you claimed on a car before the end of the "current" years ins, assuming you had insured another??

Scrap the car and do whatever, the insurers don't need to know unless you go anal, and cough up

In my youth I took out insurance on a car I didn't have just to preserve and build up my NCD. I never had any comebacks.

King_Nothing

Gloomendoom wrote: »

In my youth I took out insurance on a car I didn't have just to preserve and build up my NCD. I never had any comebacks.

And committed insurance fraud in the process, well done.

wealdroam

CGDS wrote: »

So if I want to gain the extra NCB I have to keep the car? If I keep the road tax on it is it ok to keep in a public place?

Do I have to declare anywhere that I will not be driving it as it will have no MOT next week? I can't stress how much I would prefer to keep the insurance going to build on the NCB.

If you keep the road tax on it and the insurance running, it is ok to keep it in a public place.

Next week, when the MOT runs out, it is no longer ok to keep it on the road.