Free insurance with new car - overlaps with old car's policy - no claims discount?

darknessss

Hi all

I've purchased a new car

It comes with one year's free car insurance. However, this has to start when the car is collected (ie you can't defer it).

My current policy, on my old car, expires in September. On completion I would then have two years NCD.

The two policies will overlap because my car will be ready in a week or so. Two questions:

1. Is there any way I can avoid 'losing' the last 10 months NCD, or will I have to wave them goodbye to take advantage of the free insurance?
2. Upon waving them goodbye, will my proof-of-no-claims of the one year ending September 2012 be valid to submit at the start of the free policy? (if there is a standard way of working)

Many thanks,

Darknessss

facade

Just let your old policy expire in September, keep the renewal as proof of your no claims entitlement, it will still be valid next July, when you will want to buy insurance. Ring your insurance company if you like, cancelling after 10 months you won't get anything, and you can't double insure, but I can't see it being fraudulent, there is no risk to them, as you don't own the car, find out what they think.
The "free" insurance has an enormous excess, and won't let you drive another car, and usually is SDP&Commuting only (no business use)

forgotmyname

If you dont have the car though it can put you in a sticky situation.

What if the next buyer doesnt insure it? Its OK because your policy will pay out.

facade

I doubt it as you are only insured as a driver if you own it. Probably best to check with the insurance company as I said. Maybe the car can be removed and the policy left to run out with no car on it?

OddballJamie

You could get proof of your first years no claims and provide this to the 'free' insurance company, then at the end of the 'free' year you will have two years no claims (hopefully).

Out of interest have you looked at online brokers or buying a pre-reg without the 'free' insurance? Sometimes it's better to not pay extra for 'free' stuff.

Quentin

OddballJamie wrote: »

You could get proof of your first years no claims and provide this to the 'free' insurance company, then at the end of the 'free' year you will have two years no claims (hopefully).

That won't work unless the current policy is cancelled prior to the free policy starting.

That first years NCD is being used on the current policy, and you can only use NCD on one policy at a time.

OddballJamie

Quentin wrote: »

That won't work unless the current policy is cancelled prior to the free policy starting.

That first years NCD is being used on the current policy, and you can only use NCD on one policy at a time.

As the car hasn't been collected yet you tell the current insurance when you want it to cancel and the new one starts at the same time.

I'm surprised the OP hasn't waited until September, just over a month off for the extra year no claims and 63 plate reg.

InsideInsurance

My new car didnt come with free insurance (beyond the normal 7 days) but they did offer to honour a full years NCD if you were 9 months or more the way through your current policy year and hadnt had a claim. Its always worth checking with the new insurer if they are willing to do anything. On the basis its free they may not be.

As to the comments of just letting the old policy run on the other vehicle; what are you doing with this vehicle? Trading it in?

Others have already mentioned that if you do not cancel the insurance or transfer the cover to another vehicle then your insurers could still be considered the RTA Insurers of the vehicle meaning that if no other insurance is in place then they may have to settle any third party claims and would then have a legal right to recover their outlay from you.

Aretnap

facade wrote: »

I doubt it as you are only insured as a driver if you own it.

Not quite. Once an insurer has insured a car, they are obliged by the Road Traffic Act to pay out for damage/injuries to third parties caused by the driver regardless of whoever the driver is. Even if the car is stolen, your insurer still ends up paying for damage the thief causes.

If the driver is not insured under the policy then the insurer has the option of recovering the money it pays out from the driver, or crucially, from anyone who caused or permitted the driver to use the vehicle. That means that if the OP allows the policy to keep running and the new owner doesn't insure the car and has an accident there's a risk that the bill for the damage could find its way back to the OP. Not a nice possibility.