Do I have to cancel car insurance for my old car?

kuepper

Just bought another car and insured it with a different co to my existing insurer Direct Line. I'm scrapping my old car on Monday so I won't be the owner/ keeper anymore after that. My DL policy costs £47.03 to cancel but it runs out anyway in just over a month so it seems masochistic to cancel it, so I wondered if I could just let it lapse and not renew it or would I be breaking some law as I'd have a policy for a car I didn't own and had been scrapped?

unforeseen

You wouldn't be breaking the law but there is the possibility of somebody claiming on it if the new owner is involved in an accident. So you could end up with a claim on your recorder a car you don't own and possibly my the insurer chasing you to repay their outlay.

Although it may cost a few quid, cancelling is the safest option.

Caz3121

Do you have any NCD on your current Direct Line policy?
If so, you will not be able to use it on your new policy whilst the DL policy is still in place

Sam_Fallow

If the scrap yard is going to crush or break the car then there is no problem. However some yards do sell complete vehicles if they are fit enough so that is the only thing to look out for.

When they fill out the V5 they will most likely complete the 'scrap' section rather than the new owner part. Ask them their intentions with the vehicle.

kuepper

Caz3121 wrote: »

Do you have any NCD on your current Direct Line policy?
If so, you will not be able to use it on your new policy whilst the DL policy is still in place

yes i have full no claims, but I'll get my renewal notice from DL in the next week or so which will show my no claims, wont that be sufficient for new insurer ?

Quentin

kuepper wrote: »

yes i have full no claims, but I'll get my renewal notice from DL in the next week or so which will show my no claims, wont that be sufficient for new insurer ?

No.

Until the policy ends you have no ncd to use on a new policy.

Presumably your Ncd would be worth more than the 47 you are trying to avoid paying?? (If you don't notify your insurer you have disposed of the car they are covering then you breach your policy conditions with all the repurcussions that could mean!)

Caz3121

So the comparison to make

1) cancel the policy and pay the £47, get the confirmation of the NCD for the new policy (noting you will not get any additional year for the current year as it will not be a complete year)
2) Take your new policy with zero NCD (as you do not have one you can use as it is on another vehicle) and work out the additional cost for that month plus admin fees for changing the policy and using the NCD when it becomes available. (if the insurer will allow that)

I expect your new insurer to ask for the evidence of the NCD which you will not have until the policy is cancelled...when is the policy due to start?

cajef

What you should have done in change the car details with Direct Line, they do not charge for any changes to their policies now though there may be an increase depending on the vehicle, then change to another insurer when your DL policy is due to be renewed, that way you keep your no claims intact.

kuepper

well i just chatted online with DL about this and they said let it run out!



at 10:55, Jun 4:

"You can let it run out till renewal and contact us at the renewal and ask us not to renew the policy. It's because you will be charged an early cancellation fee of £47.30 if you cancel it before the renewal date."

I've already got ncd on new insurance, they haven't yet asked for any proof. As i wouldn't get a complete year for previous 11 months wouldn't last year's policy/renewal notice be acceptable anyway if they do ask me?

kuepper

cajef wrote: »

What you should have done in change the car details with Direct Line, they do not charge for any changes to their policies now though there may be an increase depending on the vehicle, then change to another insurer when your DL policy is due to be renewed, that way you keep your no claims intact.

in hindsight this is what i should have done. I think I can still do it as i have a cooling off period of 14 days with new insurer or could change start date with them.

FutureGirl

It's best to cancel it.

I had to deal with a case recently where the situation was the same as yours but they let the policy run. Unfortunately, the new car owner had an accident, and we had to deal with the claim, as the new owner didn't insure it! (It would be the same even if they did insure it anyway, as both insurers would then have to pay for the claim).

You're already using your NCD on your DL policy - you can't use this NCD (even with one year less) unless the DL policy is cancelled. Any new insurer will see you currently have insurance and will see your NCD is on the DL policy.