Should I put a right-off through the insurance?

Nasqueron

btirvine wrote: »

Thanks Nasqueron. We're in a situation now were a friend has offered £400 to take the car and try and repair it. Should they make a profit, they then split the difference. My partner is happy with this scenario as it give her a chance to get a runaround for the time being. The problem now is what to do with the insurance; we have already called insurance company and said the original car is SORN but didn't say it was involved in an accident. They know nothing about it. We have in the mean time got another car (a friend's old one) on the insurance to insure it for the MOT which it as now failed. Needs a track rod end and brake pipes the entire way round. Now I'd be happy to get that fixed with a friend but due to the time it will take and the time to book a retest I'll be near the end of the month, plus now we have a decent offer for the original car.

The issue now is what to do about in insurance; the car insured now isn't on the road having failed the mot and also therefore has no tax. Should we totally cancel the policy or hold fire until another new car is found and bought (with valid mot and tax) and then change over. Nasquerson's post was the first I've heard about a cancellation affecting premiums or being recorded.

If the insurer cancels your insurance for an event not being disclosed to them (e.g. hiding a previous claim or declaring no points when you have some to get lower premiums) then you have to declare it pretty much forever and will not get mainstream insurance. Cancelling the insurance e.g. if they no longer wish to cover you or you asking for a refund is separate. The danger is that the insurer finds out your car was hit and you didn't declare it and decides you're trying to hide the incident for cheaper insurance and cancels, whether they actually do, who can tell

You could change the second car to a third assuming you are not going to fix it, just explain to the insurer that the second one was a friend's and did not pass the MOT and isn't worth fixing, they'll probably just charge an admin fee and move it over fine.

Quentin

btirvine wrote: »

The issue now is what to do about in insurance; the car insured now isn't on the road having failed the mot and also therefore has no tax. Should we totally cancel the policy or hold fire until another new car is found and bought (with valid mot and tax) and then change over. Nasquerson's post was the first I've heard about a cancellation affecting premiums or being recorded.

You may have another issue here with your current insurer.

Did you tell them that you neither own nor are the registered keeper of the car now on cover? If not expect more trouble should they find out!

As far as the original car is concerned then assuming you no longer have it on cover with your insurer and no longer own it then you don't need to worry about it anymore.

If you cancel your current policy expect cancellation fee etc, as well as no ncd awarded for the current year.

btirvine

The insurance company would't accept that the car was a friend's and insure it unless we were the registered keeper. So we arranged that we would be the registered keeper as we were buying the car, another separate car in their mind, when in fact it's the same car. The person who owns it was happy with this but it hasn't actually been signed over yet as this was pending the MOT pass.

The original car is still registered to her but is planning on selling it to a friend for £400 who'll then attempt to fix it and split the difference on the profit which I think is the best deal we're going to get - as opposed to scrapping it with a breakers for a few hundred. It will be signed over to this person in due time.

So we'll be left with a car which the registered keeper hasn't been transferred yet which isn't road worthy and will be returned to the original owner. The plan for now is to deal with no car for the time being and insure a third car when it becomes available.

Quentin

If you leave no car on cover then check with your insurer on how long you have to put a replacement on cover.


Some insurers insist on cancelling the policy if no car is on cover within a short period of the previous one being removed.


If you find there is not enough time for you to get a replacement then "cut your losses" by cancelling the policy ASAP.


If you are able to keep the policy running without any car on cover, then check with your insurer that your chosen replacement is acceptable to them before you buy it (otherwise if they don't "like" your new car you will have to cancel and go elsewhere for cover)