Cancelling insurance when giving up driving

AdrianC

Joe_Horner wrote: »

Then you discover just what parts unavailability really means...

Mmmm. Yes, I can see that being an issue.

Norman_Castle

TomsMom wrote: »

OK, I've done the right thing and cancelled it.

Son has finalised the part-ex and purchase of the car he was interested in and I've spoken to the insurance company. They checked the figures and the £35 charge cancels out my refund so they've cancelled my policy with no extra charge to me. That's fine with me, I'd already worked out that pro-rata two months insurance was approx £30 so I'm happy with the outcome. It's all above board and it hasn't cost me any extra.

Thanks for everyone's thoughts and input.

Ask the insurer for proof of your NCB just in case you need to get insured again in the next few years.

TomsMom

Norman_Castle wrote: »

Ask the insurer for proof of your NCB just in case you need to get insured again in the next few years.

They did actually tell me they'd be putting that in the post for me, but thanks anyway as I wouldn't have even thought about it. I wont be driving again but it's a good idea to have it as you never know!

thenudeone

ariba10 wrote: »

I see no problem in letting it run out.

Make sure you inform them in plenty of time that you are not going to renew,

There is a big problem with doing so, if the car is being sold.
Although the risk is very small, the cost could be massive.

If someone else drives the car without insurance after you've sold it, and has an accident, your insurance company can be forced to pay out to any third parties under the Road Traffic Act, as long as the policy is still live. http://www.legislation.gov.uk/ukpga/1988/52/section/151

They will then ask YOU to reimburse them, because you have broken the terms of the insurance by failing to inform them of a material change in circumstance (you no longer own the car).

For example my LV states:

You must have asked everyone covered by this insurance any questions requested by us and tell us as soon as possible about any changes, for example, a change to the main driver, any claims/convictions/endorsements, any modifications to the car, change to the use, drivers, car or address, which have happened since the insurance started or was last renewed. Failure to do so may invalidate this insurance.

and

If under the law of any country we must make a payment which we wouldn’t otherwise have to make, you must repay that amount to us.