Canceling Car Insurance Policy - Charge

bouncydog1

You really need to find out how much the insurance will be when you move as if you take the car with you, you have to tell insurers as this is a material fact as to how they will calculate the premium.

The other thing is that if you cancel the policy after a few months you will effectively not make that year's no claims bonus e.g. if you have had the policy for one full year, renew, then cancel after six months, you will only have one year's bonus.

Alternatives might be, if you can't afford to take the car with you, to leave with your parents (guessing you live at home) and to take yourself off as a driver and leave with just your mum or dad as the main driver for the rest of the year. This should mean that the premium comes down as it will be based on their age, and you make another year's bonus.

You would of course have to tell your insurers, but if you outline the circumstances then this should not cause a problem. There is no law that states that the driver of the vehicle must be the registered owner and keeper (although some insurers will only insure vehicles on this basis).

Flyboy152

bouncyd!!! wrote: »

You really need to find out how much the insurance will be when you move as if you take the car with you, you have to tell insurers as this is a material fact as to how they will calculate the premium.

The other thing is that if you cancel the policy after a few months you will effectively not make that year's no claims bonus e.g. if you have had the policy for one full year, renew, then cancel after six months, you will only have one year's bonus.

Alternatives might be, if you can't afford to take the car with you, to leave with your parents (guessing you live at home) and to take yourself off as a driver and leave with just your mum or dad as the main driver for the rest of the year. This should mean that the premium comes down as it will be based on their age, and you make another year's bonus.

You would of course have to tell your insurers, but if you outline the circumstances then this should not cause a problem. There is no law that states that the driver of the vehicle must be the registered owner and keeper (although some insurers will only insure vehicles on this basis).

But that would still mean the OP would not accrue any NCD, if she does not have any insurance in her name. The policy will end up having to be in the name of one of her parents.

Helen_J_3

Yes I live at home. Currently I'm the registered owner and keeper of the car, and there's only me on the insurance. Come April, unless I claim between now until then, I'll have 2 years no claims which I don't really want to lose but I was under the impression that if you don't have a policy for so long (5 years is it?) then you'll have to start your NCB again. Will I lose the 2 years if I don't renew for one year? I'm planning on driving again in 2012 because I'll be back in Sheffield then so will be able to afford a car again. It's just these 10-12 months in between!

vaio

NCB normally last two years although I think there are a few companies that go to three.

Helen_J_3

vaio wrote: »

I was talking about cancelling an annual policy after six months and don't think you'd get much (if any) money refunded.

Wouldn't have thought short term insurance would be any better in terms of overall cost (and considerably more expensive if you do decide not to lay the car up)

What would be the situation if I chose an annual policy and paid by monthly installments and cancelled in August i.e. I wouldn't be getting anything 'back' as such I'd just not be obliged to pay for the remaining months?

Helen_J_3

vaio wrote: »

NCB normally last two years although I think there are a few companies that go to three.

Ok I can look that up with the main companies and double check

vaio

Helen_J wrote: »

What would be the situation if I chose an annual policy and paid by monthly installments and cancelled in August i.e. I wouldn't be getting anything 'back' as such I'd just not be obliged to pay for the remaining months?

You don’t generally pay for insurance in instalments, you borrow money, that gets used to pay the insurance and then you pay back what you borrowed in instalments.

If you cancel you still have to pay the outstanding instalments and there is generally a claw back scheme where any refund (or pay out) is used to clear outstanding instalment first and you get what is left over (if any)

bouncydog1

Flyboy152 wrote: »

But that would still mean the OP would not accrue any NCD, if she does not have any insurance in her name. The policy will end up having to be in the name of one of her parents.

Where exactly did I say that the policy would not be in her name? As far as I am aware, there is no reason whatsoever that you cannot have a policy in the name of a person who is not a driver on the policy, as long as you have disclosed the material facts to insurers and they have agreed the cover. Insurable interest exists as the vehicle belongs to the policyholder and is registered in her name.

The insurance would remain in the lady's name, she would leave her parents on as drivers, and take herself off. The NCB accrues to the policyholder, which she would be, but if she was not a driver on the policy the young driver age loading would not apply and the premium should come down.

In April, if the vehicle is taken off the roads, the policy could lapse and provided the lady kept the details of her insurance together with the renewal proof of no claims bonus she would not lose the bonus when she took out a new policy in 2012.

NB - Somebody will need to confirm the position of owning a vehicle and not insuring it if it is off the roads as I am not wholly familiar with the English law position - live offshore.

Helen_J_3

bouncyd!!! wrote: »

Where exactly did I say that the policy would not be in her name? As far as I am aware, there is no reason whatsoever that you cannot have a policy in the name of a person who is not a driver on the policy, as long as you have disclosed the material facts to insurers and they have agreed the cover. Insurable interest exists as the vehicle belongs to the policyholder and is registered in her name.

The insurance would remain in the lady's name, she would leave her parents on as drivers, and take herself off. The NCB accrues to the policyholder, which she would be, but if she was not a driver on the policy the young driver age loading would not apply and the premium should come down.

In April, if the vehicle is taken off the roads, the policy could lapse and provided the lady kept the details of her insurance together with the renewal proof of no claims bonus she would not lose the bonus when she took out a new policy in 2012.

NB - Somebody will need to confirm the position of owning a vehicle and not insuring it if it is off the roads as I am not wholly familiar with the English law position - live offshore.

I think if you declare a SORN then you don't have to insure it but I don't know for certain.

Flyboy152

bouncyd!!! wrote: »

Where exactly did I say that the policy would not be in her name? As far as I am aware, there is no reason whatsoever that you cannot have a policy in the name of a person who is not a driver on the policy, as long as you have disclosed the material facts to insurers and they have agreed the cover. Insurable interest exists as the vehicle belongs to the policyholder and is registered in her name.

The insurance would remain in the lady's name, she would leave her parents on as drivers, and take herself off. The NCB accrues to the policyholder, which she would be, but if she was not a driver on the policy the young driver age loading would not apply and the premium should come down.

In April, if the vehicle is taken off the roads, the policy could lapse and provided the lady kept the details of her insurance together with the renewal proof of no claims bonus she would not lose the bonus when she took out a new policy in 2012.

NB - Somebody will need to confirm the position of owning a vehicle and not insuring it if it is off the roads as I am not wholly familiar with the English law position - live offshore.

What reason would there be for an insurance company to issue a policy on someone else's name, if they are not going to be a driver on that policy? I have tried to do a few quotes on that basis online, I couldn't any company that allow me to do it.