Cancelled car insurance but car now returned
Discussion
Hi all, hoping for some advice regarding car insurance. My son sold his first car to a friend of a friend and cancelled his car insurance accordingly whilst he was looking for another car. The friend of a friend returned the car within 2 days due to a change of circumstances and my son refunded him. Can he reinsure the car even though the log book wasn't changed over?
Edited by jtmk on Monday 13th May 11:01
jtmk said:
Hi all, hoping for some advice regarding car insurance. My son sold his first car to a friend of a friend and cancelled his car insurance accordingly whilst he was looking for another car. The friend of a friend returned the car within 2 days due to a change of circumstances and my son refunded him. Can he reinsure the car even though the log book wasn't changed over?
Presumably the change of keeper was recorded on vehicle handover, so that the "friend of a friend" could tax it and drive it home?Won't affect the insurance, he can insure the car whenever he wants, though it may be an idea to to that quickly, before they twig it's uninsured.
Sebring440 said:
jtmk said:
Hi all, hoping for some advice regarding car insurance. My son sold his first car to a friend of a friend and cancelled his car insurance accordingly whilst he was looking for another car. The friend of a friend returned the car within 2 days due to a change of circumstances and my son refunded him. Can he reinsure the car even though the log book wasn't changed over?
Presumably the change of keeper was recorded on vehicle handover, so that the "friend of a friend" could tax it and drive it home?Won't affect the insurance, he can insure the car whenever he wants, though it may be an idea to to that quickly, before they twig it's uninsured.
MitchT said:
Surely it's as simple as phoning the insurance company to see if you can reinstate the cancelled policy or, failing that, buying a new policy.
Once there is a gap cover, it must remain there, and I doubt if their insurance system could cope with that. So they will have to issue a new policy, and the OP's son will miss out on earning a NCD for the last incomplete year of insurance.Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Edited by CanAm on Monday 13th May 12:07
CanAm said:
Once there is a gap cover, it must remain there, and I doubt if their insurance system could cope with that. So they will have to issue a new policy, and the OP's son will miss out on earning a NCD for the last incomplete year of insurance.
Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Rule two should be 'inform insurer the minute you're no longer responsible for the car'.Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Edited by CanAm on Monday 13th May 12:07
Dothe 'new keeper' thing online, you should get acknowledgement in minutes by eamil.
You can often have a policy in limbo for a few days or a week, but generally if you are car-less for longer than that they will insist on cancelling the policy.
What's done is done.
Speak to insurer, take it from there.
OutInTheShed said:
Rule two should be 'inform insurer the minute you're no longer responsible for the car'.
Dothe 'new keeper' thing online, you should get acknowledgement in minutes by eamil.
You can often have a policy in limbo for a few days or a week, but generally if you are car-less for longer than that they will insist on cancelling the policy.
What's done is done.
Speak to insurer, take it from there.
Whoops forgot Rule 2a!Dothe 'new keeper' thing online, you should get acknowledgement in minutes by eamil.
You can often have a policy in limbo for a few days or a week, but generally if you are car-less for longer than that they will insist on cancelling the policy.
What's done is done.
Speak to insurer, take it from there.
During a recent change if vehicle, I asked my insurers to suspend cover temporarily, but they just cancelled it. If the computer doesn't have the facility, tough luck.
hidetheelephants said:
martinbiz said:
hidetheelephants said:
jtmk said:
my son refunded him.
That's where the problem is.119 said:
hidetheelephants said:
martinbiz said:
hidetheelephants said:
jtmk said:
my son refunded him.
That's where the problem is.OutInTheShed said:
CanAm said:
Once there is a gap cover, it must remain there, and I doubt if their insurance system could cope with that. So they will have to issue a new policy, and the OP's son will miss out on earning a NCD for the last incomplete year of insurance.
Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Rule two should be 'inform insurer the minute you're no longer responsible for the car'.Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Edited by CanAm on Monday 13th May 12:07
Dothe 'new keeper' thing online, you should get acknowledgement in minutes by eamil.
You can often have a policy in limbo for a few days or a week, but generally if you are car-less for longer than that they will insist on cancelling the policy.
What's done is done.
Speak to insurer, take it from there.
I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
Jimjimhim said:
119 said:
hidetheelephants said:
martinbiz said:
hidetheelephants said:
jtmk said:
my son refunded him.
That's where the problem is.The OP should just talk to any potential insurer.
Especially as it wold have been quicker than waiting for replies on a form that would more than likely be inaccurate.
pingu393 said:
Why?
I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
If the vehicle is involved in a crash then the insurance in force will pay out for 3rd party costs and the insured then has the claim against them. They would not be able to claim for the comprehensive part of the policy as they have no financial interest in the car after selling it. I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
pingu393 said:
Why?
I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
The risk has a small chance of happening, but a potentially massive cost.I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
If a driver were to take your scrapped car, drive it and have an accident hurting a 3rd party, then the insurance on the car would be used for the claim.
You have failed in your contractual commitment to the insurance company to notify them. Therefore they can recover the cost of the claim from you personally.
I don't know how often this has happen, but there was one well reported case of a sold second hand bike then crashed and the seller sued by the insurers.
pingu393 said:
OutInTheShed said:
CanAm said:
Once there is a gap cover, it must remain there, and I doubt if their insurance system could cope with that. So they will have to issue a new policy, and the OP's son will miss out on earning a NCD for the last incomplete year of insurance.
Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Rule two should be 'inform insurer the minute you're no longer responsible for the car'.Rule No.1 Transfer the Registration the minute ownership changes.
Rule No.2 Keep Insurance in force while vehicle is registered to you
Edited by CanAm on Monday 13th May 12:07
Dothe 'new keeper' thing online, you should get acknowledgement in minutes by eamil.
You can often have a policy in limbo for a few days or a week, but generally if you are car-less for longer than that they will insist on cancelling the policy.
What's done is done.
Speak to insurer, take it from there.
I sold a car for scrap (it still had an MOT) and it would cost £60 to cancel the insurance, so it's still insured.
What risks am I running?
The only risk that I can think of is that it is stiil insured on MiD and the new owner could run the car without cover, but still pass all the ANPR checks.
OK, if you sold it for scrap, then possibly there is no risk. But did you personally see it crushed? Do you know the plates won't appear on a ringed car?
It's a breach of your contract with your insurer, which offers them the chance to cause you ongoing pain.
Your £60 is big charge, but should be offset by some return of premium.
These days I take such charges into account when choosing a policy.
119 said:
Jimjimhim said:
119 said:
hidetheelephants said:
martinbiz said:
hidetheelephants said:
jtmk said:
my son refunded him.
That's where the problem is.The OP should just talk to any potential insurer.
Especially as it wold have been quicker than waiting for replies on a form that would more than likely be inaccurate.
Jimjimhim said:
The problem started by taking back a car that was sold, a bit of an odd thing to do.
It's not that weird a concept.The seller was happy to cancel the insurance and not have the car.
So maybe now he could SORN the car?
Or if he intends to buy another car, get new insurance taking care to buy a policy with cheap/zero fees for changing car, and competitive premiums for whatever cars he might have next.
This kind of irritation is just part of the joy of changing cars, along with generally losing a month of tax.
Depending on circumstances, the friend who bought/didn't buy the car might contribute to the costs.
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