Cancel or keep car insurance?

Figment

I intend transferring my car (insured in my name) to my Son. He will be registered keeper, and have a new insurance policy in his name with me as a named driver.

My insurance will be transferred to a new car within a month or so.

My question is what should I do with my insurance policy between transferring the current car to my Son and getting a new car?

InsideInsurance

How much NCD do you already have? What is the cancellation charges with your current insurers?

Quentin

Check with your insurer and see if they will let you suspend the policy pending your new purchase. If they will, and your suspension is over their minimum period then they should give you a credit after the policy is reinstated.

(Check that any new car you fancy is acceptable to them, otherwise you will have to cancel the policy and take out a new one)

The downside of this could be that they won't allow a suspension and insist you cancel now if you have no car to insure.

Figment

InsideInsurance wrote: »

How much NCD do you already have? What is the cancellation charges with your current insurers?

9 years (70%) Protected NCD (actually claim free for 20+ years, but 9 is the insurer's max) and £50 cancellation fee (on a policy that cost £135)

InsideInsurance

There is a small risk with not cancelling your own insurance in that if there was a claim, particularly a theft + RTA, then your policy MAY be considered the RTA insurance on the vehicle in which case the claim would go against your policy.

If there are indemnity issues (ie you havent told them the car isnt yours any more) then you MAY be liable for reimbursing them their outlay (eg from injured parties in the RTA after the theft)