Quick car insurance query...

un1eash

Hi, we've just sold one of our cars and they buyer will be collecting it tonight. The plan is to change over the policy to a car i have sorned and off the road. Trouble is our mortgage advisor has advised not to mess around with the insurance until our mortgage application has been processed as it can mess with our credit rating, i'm not sure how true this is but regardless we're going to wait.

So my question is do we just leave the policy in place even though we dont own the car anymore and just change it over in a couple weeks or do we contact the insurance company and put the policy on hold for a couple weeks?

Quentin

Your mortgage advisor has mislead you.

Notifying your insurer about a change of car won't affect your credit rating.

(But not notifying your insurer you no longer own the car they are covering could cause you problems!)

un1eash

Yeah i think theres some comunication error with my mortgage advisor, starting a new policy will add a credit search to my record but i thought just changing the cars would be ok? I dont want to do anything to upset my mortgage application as its already been on a knife edge.

lisyloo

starting a new policy will add a credit search to my record

For new quotes generally they do an "identity check" and not a "credit" check. So it's not seen by other lenders.
They would not do this if you have a policy with them already and are just making a change.

If you don't change the insurance then your SORNed car is potentially uninsured.

It would be sensible to avoid applying for any other credit right now, but that does not apply here.