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Cancelling car insurance - they want £40
Ive just bought a new car (collect next week) . I did some homework pre purchase and found insurance quotes for about £200 - happy with that.
I have 2 months left on my policy, rang my current insurers who quoted some ludicrous amounts for the new car, £90 for the remaining 2 months cover or £400 for a year.
I said I would just let the old policy run and go elsewhere, they said it was illegal, I would have to cancel as ive sold the car and pay them £40..(cancellation fee minus small refund)
Im thinking of simply telling them ive sold it, paying them nothing or just not saying a thing.
As for being illegal, ive never heard of this - whats the worse they can do ? Cancel my policy for a car I dont own ?
I have 2 months left on my policy, rang my current insurers who quoted some ludicrous amounts for the new car, £90 for the remaining 2 months cover or £400 for a year.
I said I would just let the old policy run and go elsewhere, they said it was illegal, I would have to cancel as ive sold the car and pay them £40..(cancellation fee minus small refund)
Im thinking of simply telling them ive sold it, paying them nothing or just not saying a thing.
As for being illegal, ive never heard of this - whats the worse they can do ? Cancel my policy for a car I dont own ?
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Ive just bought a new car (collect next week) . I did some homework pre purchase and found insurance quotes for about £200 - happy with that.
I have 2 months left on my policy, rang my current insurers who quoted some ludicrous amounts for the new car, £90 for the remaining 2 months cover or £400 for a year.
I said I would just let the old policy run and go elsewhere, they said it was illegal, I would have to cancel as ive sold the car and pay them £40..(cancellation fee minus small refund)
Im thinking of simply telling them ive sold it, paying them nothing or just not saying a thing.
As for being illegal, ive never heard of this - whats the worse they can do ? Cancel my policy for a car I dont own ?
Just pay the £40!0 -
It's not illegal however your new Insurer will normally require proof of no claims bonus which you won't be able to provide if you have not cancelled the other policy.
In addition if the person you sell the car to does not purchase insurance and then has a fault accident, you could ultimately end up paying the third parties claim0 -
It's not illegal however your new Insurer will normally require proof of no claims bonus which you won't be able to provide if you have not cancelled the other policy.
In addition if the person you sell the car to does not purchase insurance and then has a fault accident, you could ultimately end up paying the third parties claim
I'm pretty sure if the new owner takes insurance out then it becomes illegal.
Just pay the £40...We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0 -
A story was out a few months back. A guy sold a motorbike and forgot to cancel his insurance, the guy he sold it to had no licence and no insurance and crashed in the ride home. The rider died and the insurance wanted to hold the seller liable (some legal technicality). I've been trying to find the link but can't find it now.
Best advise, just pay the £40. If it makes you feel better I once paid £80 to cancel a £100 bike policy 8 months in!! Makes you sick but that's insurance companies for you.0 -
DaveTheMus wrote: »I'm pretty sure if the new owner takes insurance out then it becomes illegal.
Just pay the £40...
aMUSe me, how would it be illegal?0 -
aMUSe me, how would it be illegal?
Im interested as well, dealt with motoring law for many years but dont recall anything like this.
The £40 issue is more a point of principal. I also take note of the uninsured driver scenario mentioned above - which ultimately would make me cancel (no sleepless nights) etc
When I speak to them tomorrow I'll ask for the legislation.0 -
aMUSe me, how would it be illegal?
I might be wrong, but;
If you and I buy a car together for £1000. We take out two insurance policies on the same car, one for you and one for me both valued at £1000 each. We have an incentive to crash the car as we could very quickly turn £1000 into £2000.
As I said, I'm probably wrong because it's something I heard in passing conversation years ago, but I was throwing it in there in case it helps.We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com0 -
They all charge it, they all agree the same penalty charge.
Just proves they are all in it together and they are all having us over.I do Contracts, all day every day.0 -
Ive just bought a new car (collect next week) . I did some homework pre purchase and found insurance quotes for about £200 - happy with that.
I have 2 months left on my policy, rang my current insurers who quoted some ludicrous amounts for the new car, £90 for the remaining 2 months cover or £400 for a year.
I said I would just let the old policy run and go elsewhere, they said it was illegal, I would have to cancel as ive sold the car and pay them £40..(cancellation fee minus small refund)
Im thinking of simply telling them ive sold it, paying them nothing or just not saying a thing.
As for being illegal, ive never heard of this - whats the worse they can do ? Cancel my policy for a car I dont own ?
You entered into a 12 month contract with them agreeing to pay the full amount. They were kind enough to allow you to pay it in instalment and its you who wants of of the contract not them.0 -
DaveTheMus wrote: »I might be wrong, but;
If you and I buy a car together for £1000. We take out two insurance policies on the same car, one for you and one for me both valued at £1000 each. We have an incentive to crash the car as we could very quickly turn £1000 into £2000.
As I said, I'm probably wrong because it's something I heard in passing conversation years ago, but I was throwing it in there in case it helps.
It's a popular myth perpetuated by pub gossip and uninformed insurance staff as the OP has discovered.
It's not illegal to insure the same car or house etc more than once, it would obviously be illegal if you tried to claim on each policy without informing the Insurers. If you look in your policy it will detail how your Insurer deals with dual insurance eg the same car or house being insured twice which is generally for each insurer to pay half of the claim.
If it were illegal to insure more than once how come you can arrange travel insurance which covers your baggage which may well already be covered by your home insurance?
How would the day insurers or the insurers who offer cover for learner drivers operate. They both will arrange cover on vehicles that are already covered else where.
Telling you that you have to cancel the policy due to it being illegal to have the same car insured twice is just insurance staff who know little more about insurance than you do. The real reason is the Insurer wants to discharge it's responsibility under the Road Traffic Act0
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