Changing car for a newer one and avoiding car insurance gotchas
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Here is a question on behalf of my friend:
I have an old car which I want to sell and buy a used newer one. It will certainly take a couple of months to sell the one and couple of months to find and buy a newer one. I am doing it first time here in the UK so here some newbie questions:
1. Potential buyers will probably want to test drive of my old car, how this works insurance-wise?
2. If I buy a newer car first and end up having two cars can I drive the newer one under insurance of old one?
3. If not, can I use the same no claims bonus buying second insurance for second car?
4. Or can I swap the cars under existing insurance not driving old one but still keeping it for a month or two on public road until it's sold?
In other words, what is the most moneysavingexpert way to swap a car to making sure that insurance company will get minimum extra profit and ideally nothing?
I have an old car which I want to sell and buy a used newer one. It will certainly take a couple of months to sell the one and couple of months to find and buy a newer one. I am doing it first time here in the UK so here some newbie questions:
1. Potential buyers will probably want to test drive of my old car, how this works insurance-wise?
2. If I buy a newer car first and end up having two cars can I drive the newer one under insurance of old one?
3. If not, can I use the same no claims bonus buying second insurance for second car?
4. Or can I swap the cars under existing insurance not driving old one but still keeping it for a month or two on public road until it's sold?
In other words, what is the most moneysavingexpert way to swap a car to making sure that insurance company will get minimum extra profit and ideally nothing?
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Comments
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If you buy a new car before selling the old car, you can transfer the insurance over to the new one (with some admin fee or risk adjustment) and then normally add the old car on a temporary basis (for 1 or 2 weeks at a time, for a fee).
The most MSE way, if you can get away with it, is to sell the old car privately before buying the new one.
You may want to take a lower fee to trade in the older car if it's going to sit for a a while though, because whilst the old car is sitting on your driveway unused it's costing you in tax, insurance, and the MOT is running out. There's no point holding out for another £100 on the car, if it's going to cost you most of that money to keep it for that time, for instance.0 -
1. Potential buyers will probably want to test drive of my old car, how this works insurance-wise?
They need to have their own insurance. They may have it through the DOC (Driving Other Cars) clause on their own policy - check. You could be prosecuted for permitting them to drive uninsured.2. If I buy a newer car first and end up having two cars can I drive the newer one under insurance of old one?
Unlikely. If you have a DOC clause, you'll probably find it specifies the car has to be owned by somebody else than you. You may also find it needs to be insured anyway. Plus, you can't have a taxed car uninsured in its own right.3. If not, can I use the same no claims bonus buying second insurance for second car?
You may find an insurer who'll mirror your NCB for you, but it's not guaranteed.4. Or can I swap the cars under existing insurance not driving old one but still keeping it for a month or two on public road until it's sold?
You may well find your insurer offer cover for the second car at low or even no cost for a short period.0 -
So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?They need to have their own insurance. They may have it through the DOC (Driving Other Cars) clause on their own policy - check. You could be prosecuted for permitting them to drive uninsured.0 -
So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
The consequences of a permitting conviction are quite far reaching. Apart from the 6 points and heavy fine, you would struggle to hire a car through mainstream rental companies as they generally won't hire to anyone with an insurance conviction.0 -
They may have DOC cover which covers them.So how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
They may have taken out a short-term policy.
They may have taken out a policy, with the expectation of cancelling it if they decide not to buy the car.
Do you really expect YOUR insurer to cover any random idiot who phones you and says "I want to drive your car", with no knowledge of their driving history or even if they have a licence?0 -
It's a bit of a pain, but there are basically 4 optionsSo how do private car sales happen in this country then? Do buyers not ask for test drive? Do they easily accept a 'no' answer? Or do motorists face an awkward choice between breaking the law and being unable to sell a car to anyone but a used car dealer?
(1) You add him to your own insurance as a temporary named driver - depending on your insurer there'll likely be an admin fee to pay
(2) You or he takes out a one day policy separate from your own policy - Google "short term car insurance" for some providers.
(3) If his policy allows it, it may allow him to drive other cars not owned by him - but check as not all policies come with this feature. And be aware that it will only provide third party cover - there'll be no cover for damage to your car if he drives it into a tree
(4) Drive it yourself with him in the passenger seat - not as good as a proper test drive of course, but it means he can at least listen for funny noises, see how it accelerates and turns etc.
(1) and (2) are the best options, but they involve money (probably a few tens of pounds). You could ask him to split the cost - the more serious he is about buying the car, the more likely he is to say yes.0 -
While you're right that you can't generally drive two cars that you own on your own policy; if the overlap is a short one then many (not all) insurers will agree to cover both cars for a week or two at little or no extra cost.Unlikely. If you have a DOC clause, you'll probably find it specifies the car has to be owned by somebody else than you. You may also find it needs to be insured anyway. Plus, you can't have a taxed car uninsured in its own right.0 -
If you'd read to the end of that post...While you're right that you can't generally drive two cars that you own on your own policy; if the overlap is a short one then many (not all) insurers will agree to cover both cars for a week or two at little or no extra cost.You may well find your insurer offer cover for the second car at low or even no cost for a short period.0
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