Car insurance rip off?

philip

Insured my classic car Feb, renovated and MOT ready for sale. Insured.
Car was sold a couple of days ago having never left the garage where it was MOTd and restored. Car is to be further restored and is not likely to be on road for some time.
Phoned insurance broker, expecting refund only to be told I owe £60 cancellation fee, with perhaps £2.50 refund for 6 months balance on policy.
I didnt confirm cancellation. Do I have to?

ontheroad1970

philip said:

Insured my classic car Feb, renovated and MOT ready for sale. Insured.
Car was sold a couple of days ago having never left the garage where it was MOTd and restored. Car is to be further restored and is not likely to be on road for some time.
Phoned insurance broker, expecting refund only to be told I owe £60 cancellation fee, with perhaps £2.50 refund for 6 months balance on policy.
I didnt confirm cancellation. Do I have to?

If you don't cancel, then if whoever has the car through fair means or foul drives it without their own insurance, your insurance would be liable.  

philip

ontheroad1970 said:

philip said:

Insured my classic car Feb, renovated and MOT ready for sale. Insured.
Car was sold a couple of days ago having never left the garage where it was MOTd and restored. Car is to be further restored and is not likely to be on road for some time.
Phoned insurance broker, expecting refund only to be told I owe £60 cancellation fee, with perhaps £2.50 refund for 6 months balance on policy.
I didnt confirm cancellation. Do I have to?

If you don't cancel, then if whoever has the car through fair means or foul drives it without their own insurance, your insurance would be liable.  

How do you say that?
Evidence please 

EssexExile

If you don't cancel the policy the car is still insured. Whether that matters to you is another question.

400ixl

It also complicates it even if they are insured. Both insurers are liable for any claim in practice so could have to pay 50% each of any claim.

If it isn't insured by the new owner any 3rd party making a claim against the vehicle would be able to go after you as the asset insurer.

If the insurer finds out that you have sold it and another insurance policy has been taken out against their t&c's it may give them the right to cancel the policy. That means you have to declare you have had insurance cancelled for ever and a day potentiall adding hundreds to every renewal.

You could maybe suspend the policy if you intent to buy another car in the near future which some insurers will do. Otherwise cancelling it (as it won't cost you anything, just not give you much back) is the right action to take.

Brie

Can you transfer the policy to another car?  Might be more cost effective.  Likely to incur a fee but the balance of the policy may be much less expensive so you might get more of a refund.

jimjames

Do you actually need to cancel the policy?  When I sold my car they quoted something similar but I advised I wanted the car removed and for the policy to expire if I didn't get another car by the end date. 

k3lvc

philip said:

ontheroad1970 said:

philip said:

Insured my classic car Feb, renovated and MOT ready for sale. Insured.
Car was sold a couple of days ago having never left the garage where it was MOTd and restored. Car is to be further restored and is not likely to be on road for some time.
Phoned insurance broker, expecting refund only to be told I owe £60 cancellation fee, with perhaps £2.50 refund for 6 months balance on policy.
I didnt confirm cancellation. Do I have to?

If you don't cancel, then if whoever has the car through fair means or foul drives it without their own insurance, your insurance would be liable.  

How do you say that?
Evidence please 

I sold my bike but didn't cancel my insurance - White Dalton Motorcycle Solicitors

One of many such stories - always cancel (or put on hold) when vehicle is sold

philip

Thanks for the replies. I am sure you can realise my frustration at having to pay £60 to cancel a policy that has 6 months to go. 
I have other cars and policies so transferring or putting on hold is not an option.
Whilst I am pretty certain that the new owner, when he finishes his restoration will insure I am not the sort to take a chance, so next week I will pay to cancel very grudgingly.

Norman_Castle

If you expect to cancel a policy early check for cancellation fees before taking the policy out.