Will car insurance go up if I stop driving for a short time?

tombooth

Hi All,

I have been driving for 3 years so do not yet have an official No-Claims Discount but my insurance price has come down considerably over the past few years. I am now in a situation where I do not need to drive in the short term but may (or may not) need to do so again in a few months time. As such I am thinking of selling my car for now and, therefore not purchasing any car insurance. 

If I do buy another car, in say 6 months time, would I expect to have to pay a huge premium again or would it be more likely to be close to where I am right now?

Thank you

HillStreetBlues

If you have your own insurance you should be getting a NCD
NCD can last for 2 years without a policy (I think it can depend on insurer)

Stopping driving won't affect anything, when applying for a new policy it's not a question that is asked.

DullGreyGuy

tombooth said:

If I do buy another car, in say 6 months time, would I expect to have to pay a huge premium again or would it be more likely to be close to where I am right now?

You start getting NCD as soon as you are a policyholder... you just cannot protect it until you've hit 4 years which may be what you are thinking?

Insurance pricing changes all the time and so if there is a big spike in claims then everyone's premiums could go up, you may choose a car that is more risky than your current one etc

NCD lives for up to 2 years with most insurers, Admiral its 3 years, so 6 months you're fine. The one thing that would increase the premium is having a new to you car -v- your current one that you've presumably owned for a couple of years now. The gap itself wont make any difference

tombooth

Thanks, I was indeed getting confused about NCD and protected NCD.
Good to know that having an insurance gap for a while wont affect my premium though

Bigwheels1111

Just before I gave up the 2 wheeled madness of my Yamaha fazer 1000cc, better known as organ donation device by the wife.

I let my cover laps for 1Y and 9 months.

I then insured my mates old club 90 for £60 a year just to keep my no claims, Never seen or driven the bike.

Kept NCD valid.

Belenus

Bigwheels1111 said:

Just before I gave up the 2 wheeled madness of my Yamaha fazer 1000cc, better known as organ donation device by the wife.

I let my cover laps for 1Y and 9 months.

I then insured my mates old club 90 for £60 a year just to keep my no claims, Never seen or driven the bike.

Kept NCD valid.

I'm not trying to be alarmist but is that not a potential liability?

Does your insurance company know that you are not the owner nor registered keeper (assuming you are not)?

Your mate may sell the bike and forget to inform you or if the bike is stolen and involved in a serious incident causing death or injury and/or expensive damage, could that open up a can of worms?

How much money are you potentially saving, especially if it is some years before you need your own insurance again?

I apologise if I am missing the obvious here. I am not particularly knowledgeable about vehicle insurance matters.

400ixl

tombooth said:

Hi All,

I have been driving for 3 years so do not yet have an official No-Claims Discount but my insurance price has come down considerably over the past few years. I am now in a situation where I do not need to drive in the short term but may (or may not) need to do so again in a few months time. As such I am thinking of selling my car for now and, therefore not purchasing any car insurance. 

If I do buy another car, in say 6 months time, would I expect to have to pay a huge premium again or would it be more likely to be close to where I am right now?

Thank you

How far through the existing policy are you? It may be more cost effective to let the policy complete the current year if it is nearing completion. The combination of the cancellation fee and the extra years no claims discount could make it worth while.

You can keep you no claim without an active policy for 2 years with most insurers, so having a few months between policies is not going to cause an issue.

Bigwheels1111

Belenus said:

Bigwheels1111 said:

Just before I gave up the 2 wheeled madness of my Yamaha fazer 1000cc, better known as organ donation device by the wife.

I let my cover laps for 1Y and 9 months.

I then insured my mates old club 90 for £60 a year just to keep my no claims, Never seen or driven the bike.

Kept NCD valid.

I'm not trying to be alarmist but is that not a potential liability?

Does your insurance company know that you are not the owner nor registered keeper (assuming you are not)?

Your mate may sell the bike and forget to inform you or if the bike is stolen and involved in a serious incident causing death or injury and/or expensive damage, could that open up a can of worms?

How much money are you potentially saving, especially if it is some years before you need your own insurance again?

I apologise if I am missing the obvious here. I am not particularly knowledgeable about vehicle insurance matters.

I told them it’s a friends bike.
Not in my name, Cost me about £10 extra.
Given all bikes up now, 11 broken bones later.
Right ulna and radius, 7 ribs, right femur and punctured right lung.
To old now, plus wife would kill me quicker than the bike.

ontheroad1970

400ixl said:

tombooth said:

Hi All,

I have been driving for 3 years so do not yet have an official No-Claims Discount but my insurance price has come down considerably over the past few years. I am now in a situation where I do not need to drive in the short term but may (or may not) need to do so again in a few months time. As such I am thinking of selling my car for now and, therefore not purchasing any car insurance. 

If I do buy another car, in say 6 months time, would I expect to have to pay a huge premium again or would it be more likely to be close to where I am right now?

Thank you

How far through the existing policy are you? It may be more cost effective to let the policy complete the current year if it is nearing completion. The combination of the cancellation fee and the extra years no claims discount could make it worth while.

You can keep you no claim without an active policy for 2 years with most insurers, so having a few months between policies is not going to cause an issue.

What happens if the OP's car gets stolen from its new keeper who hasn't insured it, and it leaves people severely injured?  The fact that the insurance is still live on the vehicle, means that they will go after the OP's insurance and the OP's insurance could void that insurance and go after them for the full value of the claim.  Yes it wouldn't be a likely scenario, but I would never recommend anyone do this.  

HillStreetBlues

ontheroad1970 said:

What happens if the OP's car gets stolen from its new keeper who hasn't insured it, and it leaves people severely injured?  The fact that the insurance is still live on the vehicle, means that they will go after the OP's insurance and the OP's insurance could void that insurance and go after them for the full value of the claim.  Yes it wouldn't be a likely scenario, but I would never recommend anyone do this.  

Genuine question.
If a person stole a  car then that person is the uninsured one and the one that is at fault.
How would the car owner be responsible?

ontheroad1970

HillStreetBlues said:

ontheroad1970 said:

What happens if the OP's car gets stolen from its new keeper who hasn't insured it, and it leaves people severely injured?  The fact that the insurance is still live on the vehicle, means that they will go after the OP's insurance and the OP's insurance could void that insurance and go after them for the full value of the claim.  Yes it wouldn't be a likely scenario, but I would never recommend anyone do this.  

Genuine question.
If a person stole a  car then that person is the uninsured one and the one that is at fault.
How would the car owner be responsible?

Where the driver is uninsured, legals will go after any active insurance.  The Insurance industry back up system will only pay out if there is no active insurance.  It has happened.  Got very expensive for the policy holder who failed to cancel the insurance.