Changing car, insurance and NCB

katies_mum

Good morning,
My daughter is hoping to change her car in the next couple of weeks. She is currently insured with Direct Line (policy ends on 31 October) We are thinking she should swap the new car details over to the remained of the Direct Line policy so she does not lose out on a year of NCB`s (currently has 2 years and will be 3 on 31st) and now start to look round for a new policy starting from 1 November? we think this is the order to do it rather than her just take out a brand new policy for the new car and forgo the years NCB.

Also is she able to get new quotes saying she has 3 years NCB (even though not quite there yet but would be applicable on policy starting the 1st November) Don`t want to do anything wrong.

Hope this makes sense, but its the first time we have ever had to do anything like this.

Thank you so much for any help you can offer

mgfvvc

It totally makes sense to me to swap the current policy to the new car. It is unlikely to cost much for a couple of weeks and ensures that her 3rd years no claims is valid. It also gives a little extra time to find the best deal and, it is claimed that prices for policies taken out at short notice are higher than if you buy in advance. 3 weeks is supposed to be the sweet spot for the best prices.

For quotes starting when her current policy expires you would add on this years NCB.

katies_mum

Thank you so much for taking the time to reply, thats how I thought it in my mind but when you have not done this before it makes you wonder if its the correct way. Also thanks for confirming about the NCB I did wonder as she was getting quotes now if she would only be able to declare 2 years.

Frozen_up_north

Around the end of the month main car dealers might be keen to clear a car or two if they haven't sold their quota for the month. I got £4K off a £32K car for "cash" with no haggling at all, that was late November 2024.

It's a case of keeping your hands in your pockets and not appearing too keen.

katies_mum

Thank you, that is a great deal. My daughter went to look at a Citroen C3 collection today 76 plate with just 10 miles on the clock it was pre-registered to the dealer and whilst she appreciates she will be the second owner she has saved £3500. That amount would have been lost the minute she drove it onto the road had it been a brand new car with her as the only owner. She loved the car and has bought it

Bigwheels1111

I hope she did not pay much more than £15,489. 26 reg 10 miles pre reg blue.

16,895 new.

LukeB_92

One extra point to add to the good advice above, on the timing and the old car.

The changeover needs to be arranged before she collects and drives the new car - once the existing policy is swapped onto the new car, the old car is no longer insured under it. So the old car should not be driven after that point unless separate cover is arranged, and if it is being kept for a while rather than traded in or sold straight away, it still needs to be insured or declared off the road.

Also, the no-claims bonus can only be in use on one policy at a time. Using 3 years for a new policy starting 1 November is fine provided the current year completes claim-free - if anything happened in the remaining days of October that affected the bonus, the new insurer would need to be told and the figure updated.

Checking the changeover fee and any premium difference for the couple of weeks left is also worthwhile, so there are no surprises.

katies_mum

Thank you LukeB_92. It has been agreed she will collect the car at 11am on Sat 24 October. I just assumed she would tell Direct Line she is changing car on the 24th and once her Aygo was at the dealership the insurance would automatically swap over. We have never done this before so not sure how timing actually works.

Thanks about the no-claims, appreciate it can only be used on one policy at a time and she has to be a very good driver for next 2 weeks. Direct Line policy ends 31 October so new one will be 1 Nov with 3 years NCB.

There will only be 8 days for Direct Line to insure the new car, she is going to log into her account tonight and put the details in, hopefully won`t be too costly for the very short time.

LukeB_92

On the timing, it does not swap automatically when the old car arrives at the dealership - that bit does need arranging.

The usual way is to set the change up in advance, but with it timed to take effect at collection - 11am on Saturday 24 October in her case. Until that time the old car remains the insured car, so she can drive it to the dealership as normal. From that time onwards the policy covers the new car instead, and the old car is no longer covered under it, which is fine provided it has been handed over at that point and she will not be driving it again.

Two things to watch when she puts the details in tonight. First, check for an effective date and time for the change, and make sure it is set for the collection time rather than starting straight away. Second, if collection slips on the day for any reason, the change time needs to be moved too - she should not drive the new car away before the change has taken effect.

Once it is set up, it is worth checking the confirmation shows the new car, the correct date and time, and the amount charged for the remaining 8 days, and keeping that confirmation to hand on the day.

Ectophile

Ask the insurance company when phoning, or read the screen carefully if doing the car change online.

Last time I traded in a car, I did the change online, and the insurance covered me for both cars on the day of the transfer.

daveyjp

https://forums.moneysavingexpert.com/discussion/comment/82167131#Comment_82167131

That is the usual way. The old car cover ends and new car cover starts once the handover is complete.