No longer have a car. 1 month into insurance.

hughie278

Hi. A month ago I got insured on a car that my boss owned and he was due to transfer it to me (they wouldn't insure me on it otherwise). Paid the years premium up front.
Now though I have given the car back and I no longer use a car nor will I own a car for at least a week or two.

What can/should I do about the insurance? Its still active on his car at the moment as I have no car to transfer it to. Is there a standard charge or maybe no charge in my situation? (lol) Am I likely to get a refund? The policy was about £300. Does it affect me in any way having to cancel insurance?

Cheers for any input. I had written it off but someone mentioned I might get a refund.

Quentin

You should be able to get a partial refund if you want, but it may be more cost effective to keep the policy going and put your new car on it.

Cancellation fees are expensive!

hughie278

What if someone else was to try and get insurance on that car in the meantime? If I can I will wait and put it on the new car. Do insurers check for other insurance on the car when you apply?

forgotmyname

Sometimes the insurers are linked and details crop up. This is likely to cost you dearly if they find out 1st.

See if they will suspend the cover.

hughie278

Yeah I should think they would as car needs to be in my name. Just found out will cost at least £55 to cancel so wont get much of the £300 back after time spent and whatever else they decide to deduct But I think its the best plan as could be two weeks before I get another and someone is likely to use that car very soon.

Do you get any problems getting insured again after having to cancel a policy? I remember there being a check box on the application forms that ask if you have ever canceled a policy.

Quentin

No problems.

That box is about you getting a policy cancellation off an insurer, not the other way round.

hughie278

Thanks to you both. I was going to leave it running but is a bad idea when its no longer valid. Going to cancel it right now, ta.

Archergirl

Did you see if you can just suspend it for a while?

thenudeone

Leaving the policy running on the car is a very bad idea.

Suppose the current owner doesn't have insurance on the car (perhaps it's off the road or they are covered under a general policy).

Then someone steals it.

Then they have an accident causing ££££££s of damage and injuries.

Under an obscure part of law, because your insurer still has a "valid" policy on the vehicle, they may be required to pay out to the third parties.
Your insurer will them come after you to refund them, because you have broken the terms of the policy by failing to inform them that you no longer own or keep the vehicle.