Insurance quirk

ARandomMiser

I am picking up my new car on Tuesday so set about sorting out the insurance (I have a multi-car policy that still has just over a month to run). I priced around and my current insurer is coming out at 25% more expensive than the best quotes I can get (and that doesn't include QuidCo bonuses for being a first time customer).

I tried phoning them up to see if they would match but they had no interest so I asked them to cancel the policy as from close of play on Tuesday, thinking I might get a months insurance back. Apparently it doesn't work like that, the agent told me there would be a £28 cancellation fee (the agent at one point tried to tell me what a good deal this was because they normally charged £50+ for cancellations) .... yeah right!

After some discussion I told them not to bother cancelling the policy.

My only concern is that if my previous car is sold and the person has an accident within the next month could someone claim against my insurance (even though I am no longer the keeper/owner)?

JP1978

Why not check the T&C's of the insurance, I have never heard of a policy where you have to pay to leave it.

Car_54

Yes, your insurer might have to pay out in certain circumstances. AIUI they could then reclaim the costs from you, as you'd have breached the policy conditions by failing to tell them you'd sold the car.

Best to take up their generous £28 offer!

Car_54

JP1978 wrote: »

Why not check the T&C's of the insurance, I have never heard of a policy where you have to pay to leave it.

On the contrary, I'd be surprised if you could find an insurer which doesn't levy a cancellation charge. £50 seems common.

Quentin

ARandomMiser wrote: »

My only concern is that if my previous car is sold and the person has an accident within the next month could someone claim against my insurance (even though I am no longer the keeper/owner)?

You should also consider the consequences of breaching your policy by not notifying your insurer you have disposed of the car.


eg The new owner may not insure the car, but your insurer could still have to pay out to any third party injured or property damaged - your insurer would come after you to reimburse them. if its


Follow the advice in #3!


This will be much cheaper for you anyway if you currently have NCD (as you won't be able to use it on any new policy that you start whilst your old one is still running, meaning you will have nil NCD to use on your new policy)

ARandomMiser

To be fair they are well aware that I am getting rid of the car on Tuesday - and the recording of the conversation should tell them that. However just for safety sake I think I will phone them again first thing Wednesday to let them know that I no longer own the car - what they do with the policy is then up to them.

dacouch

Would it not have been cheaper to have just swapped the car over on the current policy and then shop around for all the policies when they are due for renewal in one months time

dacouch

ARandomMiser wrote: »

To be fair they are well aware that I am getting rid of the car on Tuesday - and the recording of the conversation should tell them that. However just for safety sake I think I will phone them again first thing Wednesday to let them know that I no longer own the car - what they do with the policy is then up to them.

They will want to cancel the policy and then charge you the relevant cancellation fee

Quentin

ARandomMiser wrote: »

To be fair they are well aware that I am getting rid of the car on Tuesday - and the recording of the conversation should tell them that. However just for safety sake I think I will phone them again first thing Wednesday to let them know that I no longer own the car - what they do with the policy is then up to them.

Irrespective of whether or not you have a car on cover with your "old" policy till it ends you still have nil Ncd for any new policy you start which may mean it is significantly more expensive than you have been quoted (assuming you do have ncd attached to the car)

Car_54

ARandomMiser wrote: »

To be fair they are well aware that I am getting rid of the car on Tuesday - and the recording of the conversation should tell them that. However just for safety sake I think I will phone them again first thing Wednesday to let them know that I no longer own the car - what they do with the policy is then up to them.

... and paying the cancellation charge will be up to you!

ARandomMiser

dacouch wrote: »

They will want to cancel the policy and then charge you the relevant cancellation fee

That would be their choice, we will see what happens on Tuesday. But i will not be paying them a penny.