Cancelling Car insurance and selling car to new owner

jimbo89

Hello all!

I'm currently with Admiral for my car insurance on my 206. I've been with them since October paying Direct Debits.

I'm selling my car tomorrow, so have 2 questions;

1) If i was to cancel my direct debit with them, what kind of costs am I likely to incur? Would they try and take payment for the rest of the term? (i.e, payment for the remaining 6 months?)

2) If I was to do the above and my Direct Debit cancelled, this would mean that my insurance policy would expire on the 10th Feb.
As my car is going to a NEW owner tomorrow and they will have their OWN policy when they collect it, am I liable for any government fines etc? (as the policy on my car will probably end on the 10th Feb and the new registered keeper details take a good few weeks to come through and register?) Basically I'm asking if the new owner has insurance, will that be enough or do I have to have insurance until the new registered keeper details come?

It's all a bit confusing! If someone could explain in "Laymans" terms, that would be good.

Thanks.

Jim

forgotmyname

If you phone your insurance tomorrow to cancel the policy it will end right away.

How much will they charge?? Time on cover + an admin fee.

You get them to sign and date the V5C and YOU send it off right away. The faster you do this the faster you dont have to worry.

If you leave your policy running on the car and the new owners dont insure it then you need to keep worrying.

Your policy is still valid so it could be a claim against you. And if the new owners crash it and have given false details the 3am knock on the door maybe a shock. Proving the car is not yours will be harder when they ask why your still insuring it.

You insure it whilst you have an interest in it only.. Once they sign the paperwork and give you the money cancel the insurance.

Dont forget if they test drive it and have insurance it wont cover damage to your car. If they crash it and its their fault they will owe you the money for the car.
More likely to vanish saying they have none.

Looksguywalker

Don't just cancel the Direct Debit...doing so doesn't cancel your insurance...contact your insurance co. if you are cancelling

In layman's terms, what does it say in YOUR insurance company documents regarding cancellation costs.

UsernameAlreadyExists

Or you could listen to them arrange their own insurance when they've committed to the sale in order to drive it away and then cancel yours - and lose the incomplete current year of NCB you are building up.

Obviously every single buyer of a 2nd hand car out there is as bent and hooky as hell, has no intention of ever insuring it themselves and will stitch you up at the first opportunity by speeding through every speed camera they can find and running over as many kids as they can see.

forgotmyname has valid points, but they're all seriously negative and assume you're selling to the worst possible scumbag

jimbo89

Ha! Thanks, I like worse case scenarios, a little like Martin Sheen.

It's all a bit confusing and all - I'll get them to sign the document and sent that off to the DVLA. In terms of THEM insuring it on their policy, do I need a copy of their new insurance policy or will the signature on the new DVLA form be enough?

I'll ring the swines in the morning.

Thanks.

UsernameAlreadyExists

Whether they insure it or not is none of your concern or business! As pointed out you need to not be insured yourself to avoid any come-back in the worst case scenario. I, however, have in the past not cancelled my own insurance (despite the associated risks) on the grounds of wanting to complete the year's NCB, not wanting to incur cancellation fees, and not necessarily having something else to transfer it to instead ... but that's a risk/judgement I took based on the people I've sold to.

EDIT: equally, I've bought a car (with my own FC insurance on my other vehicle that included DOC) from a copper without specific insurance on the car, and driven it home on DOC (also being covered by his own) on the arrangement that the sale didn't technically take place until I got home ... it was an extended test drive. I knew him though, and he trusted me not to be a complete !!!!!!. All was good and I got my insurance the next day.

amcg100

This all depends on whether you are going to be buying another car !!
When you sell your car do this
1. Obtain a signature on a receipt for the money
2.Obtain a signature on your V5 document

and inform DVLA Swansea of everything

Then inform your insurance company that they are no longer at risk.

You could then choose to keep your policy active ( if you intend to buy another car) or cancel it if you are going on the hoof !

If you are not buying another car the insurance company will refund premium, or if you are they will transfer to your new car

jimbo89

I usually pay using direct debit and I have made 4 payments so far. I'm with admiral, and without ringing them, would you assume that I would be liable for the TOTAL of the remainder of the 8 months with them? Or would it be a cancellation charge sort of thing?

I'm not buying a new car that's all.

I pay £60 per month and my policy started in Oct for 12 months.

Obviously (and i know) without ringing them I'm not sure what costs I'm liable for...

UsernameAlreadyExists

I suspect you'll incur an adminstrative charge of some sort, but very much doubt you'll be expected to pay for the full year.

Scrolling back, forgotmyname has already said this though

vaio

general rule for mid term cancellations is broadly pro rata for time on cover plus an admin fee of £50 ish

jimbo89

Please can you define "On-cover", does this equate to the FULL balance ie, 8 months?

My next payment is due on the 5-7th Feb