Selling car before end of policy

jacksie66

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Avatar MIA

jacksie66 wrote: »

Well lads. So my current car is 2006 Saab 93 Aero. I have it since march but now its starting to give me loads of trouble. I just want to get rid but my insurance isnt up for another month. I've paid it up until then but I want to know ,if I sell the car can I just keep the policy going to get that years no claims bonus? Or would I be better off just leaving it sit there until the policy is up. I want to sell it and save up for a new car, it's just in the way now as its barely driving. Thanks.

Yes, you'll earn the no claims bonus even if you dont own the car.

By sell do you mean scrap/give away/pay be taken away?

Sorry for your troubles.

jacksie66

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lalababa

AFAIK you have to cancel or transfer policy to different car otherwise the new owner will be driving on your insurance as that is the insurance on the car.
I have always been told by ordinary Joe soaps to cancel or transfer insurance immediately on sale and to take out the disc.
I would Hazzard a guess that you will easily get the NCB year.

Cockadoodledoo

We went from two cars to one. That meant we cancelled one insurance policy and got a refund for what was left (think there has to be more than 3 months left). Within a year, we went back to two cars and two insurance policies. Everything was at it would have been if we had continuous cover. NCB was still there despite the break.

Does that make sense?

That was with Aviva so check with your insurance provider

coylemj

lalababa wrote: »

AFAIK you have to cancel or transfer policy to different car otherwise the new owner will be driving on your insurance as that is the insurance on the car.

In relation to the third party cover, it's not the car that is insured, it's the use of the car by specific individuals or classes of individuals that is covered.

What you're claiming is that the policy will follow the car unless the OP transfers it to a different car or surrenders the cert and disc for a refund. That is not the case.

If he transfers the registration to the new owner or legally scraps the car, his policy will in effect be suspended without the insurance company being aware of it. During that period, the car will not be his problem and no claim could arise on the policy.

Eggs For Dinner

If the subject vehicle of the policy is disposed of, you must suspend or cancel the cover

coylemj

Eggs For Dinner wrote: »

If the subject vehicle of the policy is disposed of, you must suspend or cancel the cover

What happens if you don't?

The new owner can't lodge a claim on the OP's policy, he won't even know who the OP is insured with and it would never occur to even the biggest chancer to do so - claim on the previous owner's policy.

So where is there a problem if the OP just does nothing? Please don't just repeat the rule, tell us where his plan could go wrong.

I'm assuming as I stated in my earlier post that the car is sold and the change of ownership notified to Shannon or the car is properly scrapped i.e. the OP gets a certificate of destruction from an authorised treatment facility.

the_syco

coylemj wrote: »

What happens if you don't?

The new owner can't lodge a claim on the OP's policy, he won't even know who the OP is insured with and it would never occur to even the biggest chancer to do so - claim on the previous owner's policy.

The last car I sold (two years ago), I forgot to remove the disc before selling; was afraid that if they got into a crash before the change of ownership went through, that the other driver would use the disc details to claim off me.

Also, the insurance company that I used at the time wanted the disc back before they'd refund me the rest of the year. Luckily in my case I think it was only two months, so not a huge loss.

jacksie66

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Eggs For Dinner

coylemj wrote: »

What happens if you don't?

The new owner can't lodge a claim on the OP's policy, he won't even know who the OP is insured with and it would never occur to even the biggest chancer to do so - claim on the previous owner's policy.

So where is there a problem if the OP just does nothing? Please don't just repeat the rule, tell us where his plan could go wrong.

I'm assuming as I stated in my earlier post that the car is sold and the change of ownership notified to Shannon or the car is properly scrapped i.e. the OP gets a certificate of destruction from an authorised treatment facility.

Nothing will happen, Insurers are unlikely to know. However, you cannot maintain a policy on a vehicle you no longer own, that's just one of the principles of insurance. The only real difficulty I could see is if the OP continued to use his driving of other cars extension and an accident occurred. If insurers investigate and find the insured vehicle was sold, there could be problems

coylemj

the_syco wrote: »

The last car I sold (two years ago), I forgot to remove the disc before selling; was afraid that if they got into a crash before the change of ownership went through, that the other driver would use the disc details to claim off me.

That is a risk associated with any sale.

the_syco wrote: »

Also, the insurance company that I used at the time wanted the disc back before they'd refund me the rest of the year. Luckily in my case I think it was only two months, so not a huge loss.

OP doesn't want a refund, he wants the policy to run it's course. So that does not apply.

coylemj

Eggs For Dinner wrote: »

The only real difficulty I could see is if the OP continued to use his driving of other cars extension and an accident occurred. If insurers investigate and find the insured vehicle was sold, there could be problems

+1 I'll give you that, it's a potential banana skin.

So OP would need to assume the policy has lapsed and do nothing which could give rise to a claim.