Car Insurance after claim, cancel and new policy? 4 July 2022 at 3:13PM in Insurance & life assurance 4 replies 63 views

KathrynPenguin

My son only passed his test at the end of April.  He had an accident already, and his car will be written off.  It may not have been his fault, but we will see.

I need to get him in a new car ASAP as otherwise, he can't get to work, I've just had a knee replacement and cant drive.  Would I be better off cancelling the policy he has and taking out a new one?  I figure if the accident was his fault, then in 10 months' time, when his renewal is due he won't have gained a year NCB.  But if I was to cancel the policy and take out a new one then in 12 months' time he will have a year's NCB, providing he doesn't have any more accidents.

Am I completely wrong in my thinking or is this something I should consider doing?

Sandtree

He will have to pay for the full years policy if he has had an accident.  Normally you can transfer the remaining 10 months onto your replacement vehicle but as you say you wont get a years NCD for this year.

If 1 years NCD in 12 months time is worth writing off 10 more months premiums is going to be a difficult one to say!

KathrynPenguin

Thank you, that makes sense.  Being old and having protected NCB and not having had an accident in years has left me out of the loop..

Aretnap

Sandtree said:

Normally you can transfer the remaining 10 months onto your replacement vehicle

Worth adding that this is subject to his new car being one that his insurance company would normally be willing to insure him to drive, and a premium adjustment if they would insure it at a different price to his last one. So it's worth checking with them before you/he commit to buying a new car to make sure there are no nasty surprises when he asks to transfer the balance of the policy over.

KathrynPenguin

Thanks @Aretnap we have checked the new car out.