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Car insurance - cancel or let lapse

Arion
Arion Posts: 13 Forumite
I'm picking up a new (used) car on Friday and I'm currently looking at insurance cover; either upgrade my current Hasting policy or maybe get a new policy elsewhere.

My current Hasting policy expires in August (a little over 2 months cover remaining), and at the current rate it works out at £18/month cost.

The problem is, if I go with a new provider, do I cancel the Hastings policy at a cost of £55 cancellation fee, or do I simply let it lapse which costs only £36? Of course this means I would still be insured for a vehicle that I no longer own as I am trading it in on Friday.

Thanks...

Comments

  • Hintza
    Hintza Posts: 19,420 Forumite
    10,000 Posts Combo Breaker
    The downside as reported on here with letting it run is; what if the buyer doesn't take out insurance and crashes the car the claim will be against you insurance as their is a valid policy on the car.

    Best thing to do is try and re-insure with your current insurer if not just cancel it.
  • EcoR1
    EcoR1 Posts: 97 Forumite
    Part of the Furniture 10 Posts
    Hintza wrote: »
    The downside as reported on here with letting it run is; what if the buyer doesn't take out insurance and crashes the car the claim will be against you insurance as their is a valid policy on the car.

    Best thing to do is try and re-insure with your current insurer if not just cancel it.

    What they said, insuring a car you no longer own can open up a world of pain.
  • Quentin
    Quentin Posts: 40,405 Forumite
    Do you have no claims bonus?

    If so, do the sums.

    Taking a new policy without cancelling the existing one means nil ncb to use on the new policy.
  • Arion
    Arion Posts: 13 Forumite
    I didn't know I'd lose my NCB... Thanks for that.

    As suggested I think it best if upgrade my current Hastings Policy for the new car.

    Maybe I can get cover for say 6 months, then change providers?
  • Quentin
    Quentin Posts: 40,405 Forumite
    You don't "lose" it. You just can only use it on one policy at a time.


    (Don't consider just insuring it for 6 months. If you change cars over on your existing policy and keep it going till it ends in 2 months you will get an extra years NCD (assuming you haven't claimed) then shop round for the best deal at renewal time)
  • arcon5
    arcon5 Posts: 14,099 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    NCB can only be used on one policy at one time, so your new policy will start with zero ncb if you let the current one lapse. If you cancel you'll lose this years but have returned the same as you started out (if no claims was made).
  • Arion
    Arion Posts: 13 Forumite
    Thanks everyone for your help, especially Quentin.

    As advised I have now contacted Hastings and changed my vehicle details (£35 admin plus £15 for the new car).

    Very pleased with that... BTW Hastings don't do 6 monthly policies.

    Thanks again and please consider this issue closed. :T
This discussion has been closed.
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