Cancelling car insurance - what happens with my no claims bonus?

FrankRizzo

Hi,

I am due to work abroad for a period of 6 months which is likely to be extended. I want to sell my car however I am wondering what happens with my no claims discount when I cancel my insurance? It would be a pain if I come back after 6 months and buy another car to find my insurance is 3 times the cost because I have lost my no claims bonus.

Thanks

POPPYOSCAR

My understanding is as a general rule up to 2 years.

(Some might not allow it at all with a break, others 12 months though).

lewishardwick

Generally NCB/NCD can be held for up to two years if you don't have an active policy.

If you don't 100% know your plans after 6 months, I'd suggest holding off selling the car.

You'll lose a significant chunk of the insurance you've paid already. You'll take a bit on the car sale, VED refund, listing fees (Autoloader, eBay etc).

Hang on to it for 6months, it's value won't suddenly plummet.

FrankRizzo

Thanks guys for the advice, it's appreciated. I didn't know each company had different rules so that's been informative.

I am with elephant so I will check with them what there rule is.

Quentin

If you cancel your policy now then you will only "lose" the NCD for the part year you have been covered. You will get a proof of NCD showing the NCD you had at the start of the policy year (assuming no claims have been made) dated on the day you end your policy.


You will have no problems using that NCD to take out a new policy in 6 months time on your return.


Most insurers accept NCD up to 2 years old!