Sold car - when can I cancel insurance?

Beebop

Hi there,
I apologise if this is a really stupid question but here we go.......

I've just sold my car to a car dealer and filled out the yellow section of the registration document which dealer and I have both signed. Will post this to DVLA today.

My question is this - can I now cancel my car insurance as I no longer have the car, or do I have to wait until I have an acknowledgement letter from the DVLA?

Thanks Beebop

King_Nothing

I'd say you should cancel the insurance now, you have proof of sale to the dealership, and you have no insureable interest in that car now.

Beebop

King_Nothing wrote: »

I'd say you should cancel the insurance now, you have proof of sale to the dealership, and you have no insureable interest in that car now.

Brilliant - that's what I thought!
Thank you

Lum

Yes, you are only required to have insurance so long as you are using or keeping the car on a public road, which is no-longer the case.

That said, if you are planning on buying a new car, it may be worth keeping the insurance going and transferring it to your new car. Likewise if you don't have full NCB and are near to the end of the policy anyway, it may be more cost effective to let the policy finish on it's own to get the extra year's NCB that you would lose by cancelling.

Also be sure to keep the paperwork/receipts from the dealer as proof of when you sold the car, so that when the DVLA !!!! up and leave it registered in your name and you get a load of speeding tickets in the post (or fines for no insurance!) you have something to defend yourself with.

King_Nothing

Lum wrote: »

Likewise if you don't have full NCB and are near to the end of the policy anyway, it may be more cost effective to let the policy finish on it's own to get the extra year's NCB that you would lose by cancelling.

Leaving the insurance running, whilst having no insurable interest in the car can lead to it being voided and cancelled. Which can prove more costly than losing a years no claims.

vax2002

If you are planning on buying a new car ask for it to be suspended

Foxy-Stoat_3

King_Nothing wrote: »

Leaving the insurance running, whilst having no insurable interest in the car can lead to it being voided and cancelled. Which can prove more costly than losing a years no claims.

How would the insurance company find out?

If you intend on buying another car before renewal I would leave it running, unless you paid £3000 for the years insurance.

The insurance company and broker, if you went through one, will take their administration, cancellation charges and commission off any refund of premium you would of received.

andy_foster

Lum wrote: »

Yes, you are only required to have insurance so long as you are using or keeping the car on a public road, which is no-longer the case.

It is now an offence to be the RK of a vehicle if there is no insurance policy in force in respect of that vehicle, unless it is declared SORN. If you have complied with the requirements regarding the V5C after selling the car, you are no longer liable even if the DVLA hasn't updated its records and still has you as the RK.

Lum

andy_foster wrote: »

It is now an offence to be the RK of a vehicle if there is no insurance policy in force in respect of that vehicle, unless it is declared SORN. If you have complied with the requirements regarding the V5C after selling the car, you are no longer liable even if the DVLA hasn't updated its records and still has you as the RK.

The OP is no longer the RK so this does not matter to them. I didn't want to get into the whole SORN thing as it is irrelevant to the OPs query.

You are, however, quite correct.