Cancelling insurance towards end of policy - No claims

chutuk

Hi All,

I'm about to switch my car and am currently mid way through month 10 of a 12 month insurance policy which was paid up front and was purchased with 1 year no claims.  Under the policy, I wont accrue any NCD until the year is complete, however to amend the policy to cover my new car would cost approx £160 in charges and admin fees where as switching to a new policy with a new provider would only cost approx £550 for the year.  (That's declaring my existing 1 year no claims)

I'm keen to get my 2nd year no claims record so am reluctant to cancel the policy.  The admin fee for cancelling will also likely be equivalent to 1/12th of my premium, so it's unlikely I'll get any money back for cancelling.  So my question is, am I able to just leave the insurance running for the final month and accrue my 2nd year NCD even though I no longer own the car, or am I legally bound to inform the insurance company I no longer have the vehicle and am obligated to cancel early paying whatever admin fees are due.

Insurer is Hastings if that makes any difference. 

Nasqueron

If you leave the insurance running on the car and it is no longer in your possession, there is a risk the new owner doesn't buy insurance and crashes, then you get the bill. Either delay the sale, keep the car or suck up the cancellation fee/loss of NCD

Mildly_Miffed

As Nasqueron says.

As long as your policy is active, your insurer is the MID insurer of record, if the buyer doesn't insure it.

This means that if they crash it, your insurer get handed the bill.

BUT... because the driver is known but not covered, and it wasn't stolen, they can then hand the bill back to you once they've paid it.

There was a lot of coverage a few years back about a similar case - somebody bought a high-power motorbike, didn't insure it because they didn't have a licence, crashed it killing themselves and IIRC somebody else... and the seller of the bike was facing bankruptcy.

Change your car in a month's time.

cw8825

chutuk said:

Hi All,

I'm about to switch my car and am currently mid way through month 10 of a 12 month insurance policy which was paid up front and was purchased with 1 year no claims.  Under the policy, I wont accrue any NCD until the year is complete, however to amend the policy to cover my new car would cost approx £160 in charges and admin fees where as switching to a new policy with a new provider would only cost approx £550 for the year.  (That's declaring my existing 1 year no claims)

I'm keen to get my 2nd year no claims record so am reluctant to cancel the policy.  The admin fee for cancelling will also likely be equivalent to 1/12th of my premium, so it's unlikely I'll get any money back for cancelling.  So my question is, am I able to just leave the insurance running for the final month and accrue my 2nd year NCD even though I no longer own the car, or am I legally bound to inform the insurance company I no longer have the vehicle and am obligated to cancel early paying whatever admin fees are due.

Insurer is Hastings if that makes any difference. 

would having a 2nd year no claims save you more then £160 on the next policy
if yes, pay to change the car on your current
if not cancel

do not leave the policy running

400ixl

Delay buying the new car by 6 weeks, problem solved.

Hastings are a bottom dwelling insurer who will look for any reason to increase policy costs or invalidate them. Buying on cost alone is not always a good choice with motor insurance as you are finding out.

Conrad3000

Hi all.

I sold my car about a week ago but I thought I'd leave my insurance running until it expires (in April).

After reading the responses in this thread, I'm getting a bit worried.

My insurer is Sheilas' Wheels and if I cancel tomorrow, it seems there'll be some sort of admin fee.

Will that be taken out of the remaining premium I paid or will that be a separate additional charge for me to pay?

Here's the link:

https://www.sheilaswheels.com/car-insurance/administration-fees

Thanks.

jimjames

You can remove the car but leave the policy running which avoids the cancellation fee.

Conrad3000

jimjames said:

You can remove the car but leave the policy running which avoids the cancellation fee.

So do I just tell them I've sold the car but not to cancel the insurance?

Hoenir

jimjames said:

You can remove the car but leave the policy running which avoids the cancellation fee.

The policy will by default lapse. 

cw8825

jimjames said:

You can remove the car but leave the policy running which avoids the cancellation fee.

Maybe for a couple of weeks they might agree but not for a couple of months

Conrad3000 said:

Hi all.

I sold my car about a week ago but I thought I'd leave my insurance running until it expires (in April).

After reading the responses in this thread, I'm getting a bit worried.

My insurer is Sheilas' Wheels and if I cancel tomorrow, it seems there'll be some sort of admin fee.

Will that be taken out of the remaining premium I paid or will that be a separate additional charge for me to pay?

Here's the link:

https://www.sheilaswheels.com/car-insurance/administration-fees

Thanks.

policy should really be cancelled if you have no intention or are unable to replace the car on the policy. 

Yes going by those fees you would be charged £60 if you are in your first policy with them.