car scrapped but cancellation costs more than last monthly payment

tibawo

So… this is new to me so seeing if anyone been through something similar and what they did.

Have sold the car to scrapyard. Filled in documents and so DVLA know.

My car insurance runs out end of January. However they charge £50 admin to cancel it which is more than what is left to pay on my monthly instalment.

Can i just let it run and just not renew ? Are there any repercussions? 

chrisw

You need to speak to them. If you're replacing the car they will usually suspend the cover for a while until you can swap it to the new car. Otherwise they will usually match the cancellation fee to the outstanding premium if it's less than £50. It's not a good idea to keep it running.

Aretnap

The risk is that if someone else drives the car and doesn't insure it themselves, your insurer could potentially still be in the hook for any damage they cause.

Your insurer could then potentially try to reclaim its costs from you because you had not complied with the terms of your policy, by not telling them that you had sold it. This has happened on occasion. 

https://www.visordown.com/news/general/biker-may-be-forced-pay-thousands-after-banned-new-owner-has-fatal-crash

Unless the car is obviously a wreck which will never be drivable again, personally I wouldn't risk leaving the policy running for the sake of a few pounds in cancellation fee 

(Under the Road Traffic Act the insurer is liable for this party claims even where the person driving was not covered by the policy -basicalky to ensure that there is someone to compensate the victims of uninsured drivers. The Motor Insurers Bureau only pays out if central funds where they car had no insurance whatsoever.)

DullGreyGuy

tibawo said:

Can i just let it run and just not renew ? Are there any repercussions? 

That your insurers are still the RTA insurers of the vehicle and you will be deemed to have consented for others to use the vehicle if they were to drive it and cause an accident so would have to pay the total cost of the third party claim yourself. 


The link above is a reasonable one, it was only a motorcycle so the damage the seller was having to repay was only into the thousands. Have seen claims that vastly higher because the incorrectly insured vehicle was a car and they do much more damage to squishy things like pedestrians and cyclists, had a 6 figure some in one case where a policyholder had allowed someone not on the policy to drive the car. Had a charge on their home and more than a grand a month directly removed from their net salary to us. 

born_again

tibawo said:

So… this is new to me so seeing if anyone been through something similar and what they did.

Have sold the car to scrapyard. Filled in documents and so DVLA know.

My car insurance runs out end of January. However they charge £50 admin to cancel it which is more than what is left to pay on my monthly instalment.

Can i just let it run and just not renew ? Are there any repercussions? 

Did you not do it online?
Was the car being scrapped, if so then scrapyard should have done it onine & your get confirmation.

tibawo

born_again said:

tibawo said:

So… this is new to me so seeing if anyone been through something similar and what they did.

Have sold the car to scrapyard. Filled in documents and so DVLA know.

My car insurance runs out end of January. However they charge £50 admin to cancel it which is more than what is left to pay on my monthly instalment.

Can i just let it run and just not renew ? Are there any repercussions? 

Did you not do it online?
Was the car being scrapped, if so then scrapyard should have done it onine & your get confirmation.

I think you have misunderstood- the dvla bit is all done. It’s the insurance I was asking about.

DullGreyGuy

tibawo said:

born_again said:

tibawo said:

So… this is new to me so seeing if anyone been through something similar and what they did.

Have sold the car to scrapyard. Filled in documents and so DVLA know.

My car insurance runs out end of January. However they charge £50 admin to cancel it which is more than what is left to pay on my monthly instalment.

Can i just let it run and just not renew ? Are there any repercussions? 

Did you not do it online?
Was the car being scrapped, if so then scrapyard should have done it onine & your get confirmation.

I think you have misunderstood- the dvla bit is all done. It’s the insurance I was asking about.

It was just a side comment that you'd said you filed paperwork whereas most would just have done it online these days rather than on paper. You've been here long enough to know tangents are gone down

JohnSwift10

If you're not getting insurance from that company then just let it run out.
Make sure that it doesn't auto renew.

I did that when the insurance company wanted me to repay the cashback they gave me when I only had 4 weeks left and I had paid for the year.when I scrapped that car.

Though that was 30 years ago, things might have changed since then.


Never went with that company again even if I could get my car insurance cheaper with them.