We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!

Scrapping - What happens to insurance?

2

Comments

  • mikey72
    mikey72 Posts: 14,680 Forumite
    You can't insure a car you don't own.
    If you scrap it you have to declare it, your insurance will be cancelled, you will be lucky to get anything back after the fees, and you will lose this years no claims. If you don't declare it, there is nothing to stop the scrapyard selling it on, putting it back on the road, and it will still have your policy on it.
    The best way it to sorn it, store it off road, and let the policy run to expiry, and keep the ncd. Cash in the tax as well.
  • mikey72
    mikey72 Posts: 14,680 Forumite
    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.

    Only because no-one crashed the car. Now it's on a database, they don't even need that.
  • PsiDOC
    PsiDOC Posts: 354 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    OK look. Your NCD is valid for TWO YEARS WHEN YOU DO NOT HAVE AN INSURANCE POLICY IN PLACE. << Is that clear enough?
    Scrap the car (or get the lad round the corner - usually called "spanner" - to fix it on the cheap!)
    Cancel your insurance and ask you insurer for a confirmation of NCD letter
    Keep your insurance documentation including policy, certificate and NCD letter from the insurance company in a safe place even though the car has gone to the great metalyard in the sky.
    When you do get a new car just after Xmas or whenever you can prove your NCD and bob's your mum's brother.

    Easy Peasy Lemon Squeezy!
    Psi
    Near a tree by a river, there's a hole in the ground.
    Where an old man of Aran goes around and around....

  • mikey72
    mikey72 Posts: 14,680 Forumite
    PsiDOC wrote: »
    OK look. Your NCD is valid for TWO YEARS WHEN YOU DO NOT HAVE AN INSURANCE POLICY IN PLACE. << Is that clear enough?
    Scrap the car (or get the lad round the corner - usually called "spanner" - to fix it on the cheap!)
    Cancel your insurance and ask you insurer for a confirmation of NCD letter
    Keep your insurance documentation including policy, certificate and NCD letter from the insurance company in a safe place even though the car has gone to the great metalyard in the sky.
    When you do get a new car just after Xmas or whenever you can prove your NCD and bob's your mum's brother.

    Easy Peasy Lemon Squeezy!
    Psi

    Clear, apart from the part where you lose the ncd you were building up this year, and the cancellation charge that means you get nothing back as well. <<<<<<
  • Gloomendoom
    Gloomendoom Posts: 16,551 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    mikey72 wrote: »
    Only because no-one crashed the car. Now it's on a database, they don't even need that.

    That would have been hard... the car didn't exist.:D

    I made the reg number up
  • Yorkie1
    Yorkie1 Posts: 12,336 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    PsiDOC wrote: »
    OK look. Your NCD is valid for TWO YEARS WHEN YOU DO NOT HAVE AN INSURANCE POLICY IN PLACE. << Is that clear enough?

    You are missing the point and there's no need to shout.

    The OP's point is that he will have accrued a further year's NCD if he retains the policy for another 4-5 months. The issue is how he obtains that additional year's NCD, not the position he is in currently with the already-accrued previous years' NCD.
  • PsiDOC
    PsiDOC Posts: 354 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    mikey72 wrote: »
    Clear, apart from the part where you lose the ncd you were building up this year, and the cancellation charge that means you get nothing back as well. <<<<<<

    I thought that was academic. You get 1 years No Claims for EACH YEAR of claim free motoring. You cancel 8 months into the year then you have not completed said year of Claim free motoring, and hence are NOT entitled to it.
    Near a tree by a river, there's a hole in the ground.
    Where an old man of Aran goes around and around....

  • CGDS
    CGDS Posts: 24 Forumite
    Yorkie1 wrote: »
    You are missing the point and there's no need to shout.

    The OP's point is that he will have accrued a further year's NCD if he retains the policy for another 4-5 months. The issue is how he obtains that additional year's NCD, not the position he is in currently with the already-accrued previous years' NCD.

    Bang on the button.

    Thanks for the input here everyone. So the concensus is that I have to stay in posession of the car until I get a new one or else I need to cancel my current insurance if I scrap? That sucks - just paid £150 on a new exhaust and springs as they originally failed the MOT. If I was scrapping the car I could have returned the parts and got around 90% of the money back.

    The car has had pretty much everything other than the engine checked, and I am not willing to go that route to save it. Far too expensive.
  • vaio
    vaio Posts: 12,287 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    are you sure it's not worth sorting the misfire out, if you can you get a car to run around in for the next five months and then you can still sell it with 6 months mot, that's got to be worth upwards of £250-300
  • patman99
    patman99 Posts: 8,532 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Photogenic
    There's nothing to say that the car actually needs to be complete to be insured. If you can remove the springs and exhaust, then do so. You could even strip and sell any parts you are confident-enough to remove, such as lights, bumpers, front grille etc. Who knows, you may even make enough dosh to hasten the purchase of your next car. It all depends on the make/model of your current one.
    Never Knowingly Understood.

    Member #1 of £1,000 challenge - £13.74/ £1000 (that's 1.374%)

    3-6 month EF £0/£3600 (that's 0 days worth)

This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.9K Banking & Borrowing
  • 253.9K Reduce Debt & Boost Income
  • 454.7K Spending & Discounts
  • 246K Work, Benefits & Business
  • 602.1K Mortgages, Homes & Bills
  • 177.8K Life & Family
  • 259.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.