Can I sell car before insurance ends and still get NCD?

JonnyTaunton

Hi,
I'm a 18 year old student who's a bit cash strapped at the moment. I have come to the realisation I simply cannot afford the insurance on my car next year so I have come up with a plan to sell my current car and use the money to buy a cheap car and use the remaining money for insurance.

The problem with this issue is that I really need to be selling the car in July so I have the money for a new car and new insurance when my current cover ends in August.

So my question is can I sell my car and leave my insurance running a couple weeks to the end without actually having the car so I can get my no claims discount or will I need to cancel my policy right away and lose my no claims discount.

I know what the correct thing is to do in this situation but I also know its going to be tough to continue driving into the new year financially without the no claims discount due to the inflated insurance from not having any no claims discount!

Any advice on this would be greatly appreciated.

Carrot007

Beyond breaking the terms and conditions and risking higer insurance for life probably nothing!


What is stopping you getting a new car and changing the car on your policy and it renewing a month later with NCD?

JonnyTaunton

Just means I would have to take out a loan, I just don't have the money to buy the car at the moment and I was gonna use the money from the sale to buy the new car

AndyMc.....

What you going to do if the cars crashed after you sell it? You may find your insurance paying.

Herzlos

JonnyTaunton wrote: »

Just means I would have to take out a loan, I just don't have the money to buy the car at the moment and I was gonna use the money from the sale to buy the new car

Why does that require a loan? Get the money from current car, spend it on new car, and keep your insurance company updated.


You may have difficulties if you're selling to someone like webuyanycar.com who'll take a few days to pay you though. How much is the car worth anyway?It's a different story selling a £5k car to a £500 car.

PDC

The above poster makes good sense it seems to me.

May be worth talking to your insurer if you want to do it the way you've said. Some years ago when I sold my car I contactacted my insurance to cancel and they said if I continued with the policy for the remaining two months they would count that as another years ncb.

This was about ten years ago so things may have changed now.

marlot

https://www.dailyrecord.co.uk/news/scottish-news/scots-biker-insurance-hell-after-4141840

MEM62

JonnyTaunton wrote: »

Any advice on this would be greatly appreciated.

Unless you want to take the risk of severe financial consequences you cancel the insurance immediately upon selling the car.


https://www.whitedalton.co.uk/motorbike-blog/2013/10/i-sold-my-bike-but-didnt-cancel-my-insurance/

fuzzything

Talk to your insurer now, it is likely they won’t have an issue with a gap of a few months with no car ownership.

I can’t speak from personal experience but this article on compare the market addresses this issue:

https://www.comparethemarket.com/car-insurance/content/is-my-no-claims-still-valid-after-a-break-in-my-insurance-cover/

Can I carry my no claims bonus over after a gap in policies?

That depends how big that gap is and who your insurance provider is. Most insurance providers will say a no claims discount is invalid if you have a break in your car insurance of two years or more, where as other providers may go to three years. So, it pays to shop around and ask questions.