What happens to car insurance i I scrap my car??

elliesmemory1

This might be a stupid question but my car is possibly going to be scrapped if it needs alot of work for next mot.
Will I have to continue to pay insurance for it? renewal date is April.
I will be getting another car and that one needs some work and is at the moment off the road untill it has had some work done so I think I will have to insure them both for approx a month til I get the new one back on the road. Do I have to use the same insurance company for the new car?
I would like to change companys but am unsure as to if the old cars insurance will make me pay the whole years as I pay by DD.
Sorry if his is a bit confusing!

InsideInsurance

You can cancel the insurance on the existing car if you wish. Assuming you haven't made any claims you will get a partial refund (if you paid in full up front) but there will be a cancellation fee charged as well.

One option could be to add the new car as a Temporary Additional Vehicle to cover the month overlap and then switch the vehicle on cover when you dispose of the other car. The problem with this is the 2 admin fees you are likely to be charged.

Remember that when you take out the new policy you will not be able to use the NCD on it as it will currently be used on the old one still due to the overlap.

elliesmemory1

Thanks for the reply, I pay monthly by DD so am worried they will make me pay for the rest of the year.
I was hoping that I may be able to change companys for the new car.
Is it possible to insure the new one with a new company and then cancel the old insrance once I scrap the old one? Sorry for the stupid questions but im a bit worried by insurane and dont want to do anything wrong!

InsideInsurance

Yes it is possible to, though the issue with doing it that way is you cannot use your NCD on the new one as it will be being used on the old car at the time you insure the new and an NCD can only be used on one policy at a time. Cancelling the old one will incur fees.

If you definitely want to be moving to a new insurer you should check the costs of what you are proposing, taking into consideration the NCD issue (most wont allow you to add NCD mid term) and cross check it against adding the new vehicle as a TAV to your existing policy then cancelling it and puting the new vehicle on a new policy with the NCD when you dispose of the old car.

midgetessa

It would be simpler and cheaper for you if you can avoid insuring 2 vehicles at once.

The simplest and probably cheapest way (if you are sure the new car will be ready for action soon), is just phone your insurer on the day you scrap the old one and change your vehicle details to the new one.

If you cancel your current policy you will very likely lose the months you have built up towards another year's no claims bonus so it might be best to avoid that and just update your policy with the new vehicle details (there will be a change in the overall premium and your monthly dd will be recalculated accordingly).

You are not really obliged to insure the new car until it's 'on the road'. If you will be the registered keeper of it BEFORE it's back on the road, avoid having to insure it if you wish by filling out a SORN declaration form.

elliesmemory1

Thanks. will ring insurance co ad see whats best.

elliesmemory1

midgetessa wrote: »

It would be simpler and cheaper for you if you can avoid insuring 2 vehicles at once.

The simplest and probably cheapest way (if you are sure the new car will be ready for action soon), is just phone your insurer on the day you scrap the old one and change your vehicle details to the new one.

If you cancel your current policy you will very likely lose the months you have built up towards another year's no claims bonus so it might be best to avoid that and just update your policy with the new vehicle details (there will be a change in the overall premium and your monthly dd will be recalculated accordingly).

You are not really obliged to insure the new car until it's 'on the road'. If you will be the registered keeper of it BEFORE it's back on the road, avoid having to insure it if you wish by filling out a SORN declaration form.

The problem with doing tht is that i will need to take the new car for a mot etc and I need to insure it to do that I think?

midgetessa

Hardupandfedup wrote: »

The problem with doing tht is that i will need to take the new car for a mot etc and I need to insure it to do that I think?

If it's not SORN'd and you are either the registered keeper or driving it anywhere then it must be insured.

You can drive it (directly) to a pre-booked MOT test without taxing it, though.

The best solution here is firstly to phone your insurer and say you're thinking of changing vehicles and ask them what the new monthly premium would be BEFORE going ahead. That way you can change over the insurance to the new car on the day you finish with the old one without any nasty surprises.

elliesmemory1

it is sorn at the moment, but to get it moted etc I wliil have to drive it and I cant tax it til its moted, I will be ringing insurance comp. Thanks

dazza.mk

http://www.direct.gov.uk/en/Motoring/OwningAVehicle/HowToTaxYourVehicle/DG_069671

"Driving an untaxed vehicle to an MOT test

You can drive your vehicle to and from a pre-arranged test at an MOT test station as long as you have adequate insurance cover in place for the use of that vehicle.
This is also for vehicles being driven to and from a pre-arranged test at a Vehicle Inspection Check (VIC) test station, an approved weight testing station and reduced pollution test."


So your only issue is insurance rather than tax prior to the prearranged MOT (although you can only drive it to the prearranged MOT)

agrinnall

Hardupandfedup wrote: »

Thanks for the reply, I pay monthly by DD so am worried they will make me pay for the rest of the year.

They will certainly want you to pay for the proportion of the full year that the car has been insured plus a cancellation charge, that is quite likely to be more than you've paid in instalments so far so I would expect you to owe them something once the policy is cancelled.