Cant afford to cancel insurance

2sidez

Hello,

I really need some advice today as I am in a real pickle .

I am halfway through a car insurance contract for which I am paying monthly.
My car has just died and I have to scrap it. I will survive without a car for a couple of months.

My problem is that the cancellation fee is £125 plus 70% of my premium.
I don't have any money at the moment. My account is completely empty. I just have enough cash to get through the money.

So I can't afford to cancel my insurance but I also do not need insurance as I do not have a car .


What do I do?

Any help is appreciated!

HappyMJ

2sidez wrote: »

Hello,

I really need some advice today as I am in a real pickle .

I am halfway through a car insurance contract for which I am paying monthly.
My car has just died and I have to scrap it. I will survive without a car for a couple of months.

My problem is that the cancellation fee is £125 plus 70% of my premium.
I don't have any money at the moment. My account is completely empty. I just have enough cash to get through the money.

So I can't afford to cancel my insurance but I also do not need insurance as I do not have a car .


What do I do?

Any help is appreciated!

Pay the fee, continue paying monthly or transfer the insurance to another car. Pick one. It's your choice.

If you can keep the car you could take it off the road and SORN it so you don't need to pay the road tax (or whatever it's called these days). Just before the insurance runs out you can take it to the scrapyard or sell it on for spares or repair.

You could to stop paying the insurance but you might (I would put money on it that you will) get a late payment marker on your credit report followed soon by a default.

citykid5

I don't think by law you can sorn a car but keep it insured? Your only option would be to keep the car taxed and insured but not use it or try to repair it.
Sorry

iainscomputer

You can sorn a vehicle & keep it insured, I do it every winter with my motorbike.
You cannot keep a vehicle taxed & have it without insurance.
But do not sell/scrap the car & keep it insured, as this can have very bad consequences.

HappyMJ

citykid5 wrote: »

I don't think by law you can sorn a car but keep it insured? Your only option would be to keep the car taxed and insured but not use it or try to repair it.
Sorry

Yes as the previous post states you can have insurance on it and no tax but not the other way around. If it's taxed it must be insured.

That's why I would keep the car off road waiting for the insurance to run out as the last post also states there can be some consequences if it's scrapped significantly before the insurance runs out and someone else acquires it.

I would dispose of the car in the last month of the insurance period. I'd even wait until the last week so that no one else can repair it and keep it on the road under what would be the owners insurance.

Of course disposing of the car and cancelling the insurance stops that liability but that's more costly than just taking it off the road and allowing the insurance to expire.

lizziesharples

Does your insurer offer suspension? That may be a way around paying the full cancellation fee.

citykid5

HappyMJ wrote: »

Yes as the previous post states you can have insurance on it and no tax but not the other way around. If it's taxed it must be insured.

That's why I would keep the car off road waiting for the insurance to run out as the last post also states there can be some consequences if it's scrapped significantly before the insurance runs out and someone else acquires it.

I would dispose of the car in the last month of the insurance period. I'd even wait until the last week so that no one else can repair it and keep it on the road under what would be the owners insurance.

Of course disposing of the car and cancelling the insurance stops that liability but that's more costly than just taking it off the road and allowing the insurance to expire.

Thanks guys. I stand corrected

rs65

lizziesharples wrote: »

Does your insurer offer suspension? That may be a way around paying the full cancellation fee.

Sounds like the best option, assuming you can afford the normal monthly payments (or maybe a bit less). Ask if you can suspend the policy pending purchase of new car.