The Big Decision

fluffy123

Well, after nearly 9 years of driving collecting almost 7 years of NCB - I'm facing the dilemma of selling my car due to lack of use in relation to the escalating costs of driving. My car is due an MOT in May and my insurance in June so I need to make a decision pretty soon and stick to it.

I don't know what to do for sure.

I'm 28 and drive a 5-year old car roughly valued at £4,000 at present and facing an insurance cost towards £750 on renewal in the next few months, last year it was around £600 meaning I was spending roughly £50 a month on insurance, so you can see the increase.

What do I use the car for? very little to be honest. I live in the city centre and my place of work is a 15-minute walk away so I walk to work anyway. I drive to a supermarket and to see family (about 20/25 minute drive away) twice per week and....thats about it. We're probably talking about an average of 200 miles a month.

At present, I have little debt other than an exisiting £9000 loan (as it stands) which is due to be completed in 3 years time and a smallish overdraft.

I just worry about my loss of NCB etc etc, all the hard work being built up to let it disappear and the freedom that having a car provides.

Its a tough decision isn't it?

Quentin

fluffy123 wrote: »

I just worry about my loss of NCB etc etc, all the hard work being built up to let it disappear

This shouldn't be your main concern.

Your NCB can still be used for 2/3 years after it was last issued.

If you don't buy any insurance for the next 3 years you will have saved a lot on premiums alone!

fluffy123

Ah to be honest, I wasn't aware of that. So I would just be able to keep my renewal note as proof of my NCB and use it possibly 3 years down the line? Interesting.

birkee

It's a long time ago now, but....
When a lad, I was insured on a motorbike for a couple of years.
Then I joined the RAF for five years.
When I came out of the RAF, I bought a car, and just happened to insure with the same company. Whey hey!!! I got a NCB, and I didn't know I was entitled to one!
(Didn't even remember it was the same company)

Suggestion:- Ask em how long they will keep it open for you! (Particularly if you return to them, when you need insurance again.)

Wh05apk

With depreciation you are probably looking at about £1500pa or about 60p per mile before petrol, probably cheaper to use the odd taxi/hire a car for longer trips, and/or buy yourself a cheap moped for running around.

Lum

Most insurance companies only let the NCB last for two years.

It's certainly enough time to try living without a car. Couldn't do it myself mind.

Quentin

Lum wrote: »

Most insurance companies only let the NCB last for two years.

One (big) one I know of (aviva) takes it three years old!

Hammyman

fluffy123 wrote: »

We're probably talking about an average of 200 miles a month.
(

That would work out around here at about £200-£250 a month in taxi fares.

Lum

Quentin wrote: »

One (big) one I know of (aviva) takes it three years old!

Yes, but Aviva are bloody awful.

Edit: to say something actually useful

Is that debt something you can pay off early without penalty? If not stick the profit from selling your car into an ISA or something and then a year down the line, you can buy a car identical to your old one for less than what you sold it.

Or pay off the debt and channel the repayments into an ISA for the same effect, though this is riskier if you decide sooner rather than later that you want a car back.


And yes some insurers will take 3 years but most will not, which will limit your options come renewal time and therefore might exclude you from the best deal.

Quentin

Language! Your opinion of course, and you entitled to it!

But it wouldn't matter if all you wanted was your 3 year old NCD being accepted!

And you wouldn't have to stay with them!

Lum

You'd have to stay with them for a year, surely? Or do you think you could cancel within the 14 day period and get a shiny new NCD proof?