What to do with insurance when switching vehicles?
What to do with insurance when switching vehicles?
Author
Discussion

chrispwill

Original Poster:

177 posts

154 months

Tuesday 27th September 2016
quotequote all
Hi, I have searched for this topic but nothing useful comes up.
In the past when I've switched vehicles, I've generally tried to time it so that I buy a new one when my insurance runs out, or do it through a dealer so that I can change my vehicle on insurance in an instant (part exchange to dealer).

Just wondering what others do, and if there's a better way round this when buying privately? What do you do for the period between selling your current vehicle, and purchasing your new one? In the situation where you need to sell your current vehicle to have the funds for your new one, you then can spend a week or two searching for your new vehicle.
You don't want insurance to remain valid for the vehicle you've sold, but you don't want to cancel to have to start your no claims build up again.

Is there a solution, or is it just the way it is?

JB8

381 posts

175 months

Tuesday 27th September 2016
quotequote all
Call insurer, change over to 'new' vehicle on policy, ask for temporary cover for 'old' vehicle.

Pay nominal fee for temporary cover. Usually about £25ish for 14 days.

Red Devil

13,524 posts

238 months

Tuesday 27th September 2016
quotequote all
Er, you have misunderstood the question. As they say on the railways. 'Mind the Gap!'
What insurable interest does the OP have in a vehicle he has sold to another party?

OP said:
What do you do for the period between selling your current vehicle, and purchasing your new one.
OP, why not speak to your insurer before assuming that you will have to start from scratch rebuilding your NCB?
In 50 years it has never been an issue with any of the ones I have used. My entitlement has simply been reapplied to the new policy.

numtumfutunch

5,174 posts

168 months

Tuesday 27th September 2016
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I am currently on a 3 month break between cars with no concerns that my NCB will be honoured when I insure the next one

Admittedly you now have me a bit worried, although 20y ago I had a 2y break which was fine back then..........

KevinCamaroSS

13,846 posts

310 months

Wednesday 28th September 2016
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You could also ask your insurance company to put the insurance 'on hold' as an option, some do this.

walm

10,644 posts

232 months

Wednesday 28th September 2016
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Confused.com says that once earned a NCB remains valid for up to two years without insurance.

rigga

8,806 posts

231 months

Wednesday 28th September 2016
quotequote all
walm said:
Confused.com says that once earned a NCB remains valid for up to two years without insurance.
This is correct, there is no issue having a period of no insurance between selling and purchasing a different vehicle.

BertBert

21,292 posts

241 months

Wednesday 28th September 2016
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The only issue is the (potential) loss by cancelling one policy and starting a new one.

Fore Left

1,618 posts

212 months

Wednesday 28th September 2016
quotequote all
I'm assuming this is mod-term on the policy so you don't want to cancel it. Speak to your insurer, they'll probably put it on hold for you till you find another car but you'll probably still have to pay the premiums.

chrispwill

Original Poster:

177 posts

154 months

Wednesday 28th September 2016
quotequote all
Sorry, I was unclear on my question. I know that NCB remains valid for up to 2 years (or however long) of no insurance, I meant more in terms of building up the no claims. Say I'm 8 months in to building up 5 years no claims, if I were cancel at that point, everything I'd built between 4-5 years would be lost, is that right?

So I'd end up going back to having 4 years no claims instead of 4 and 8 months, if that makes sense.

From what others have said, asking insurers to 'hold' the insurance seems to be an option, so I'll look into that! Thanks

mcflurry

9,190 posts

283 months

Wednesday 28th September 2016
quotequote all
chrispwill said:
Sorry, I was unclear on my question. I know that NCB remains valid for up to 2 years (or however long) of no insurance, I meant more in terms of building up the no claims. Say I'm 8 months in to building up 5 years no claims, if I were cancel at that point, everything I'd built between 4-5 years would be lost, is that right?

So I'd end up going back to having 4 years no claims instead of 4 and 8 months, if that makes sense.

From what others have said, asking insurers to 'hold' the insurance seems to be an option, so I'll look into that! Thanks
If you stop the policy, and don't start another, you will still have 4 years NCD.
If you transfer the policy to the new car, then in 4 months you'll have 5 years NCD, assuming no claims are made.

In reality, the difference between 4 and 5 years NCD will probably be small.

chrispwill

Original Poster:

177 posts

154 months

Wednesday 28th September 2016
quotequote all
mcflurry said:
If you stop the policy, and don't start another, you will still have 4 years NCD.
If you transfer the policy to the new car, then in 4 months you'll have 5 years NCD, assuming no claims are made.

In reality, the difference between 4 and 5 years NCD will probably be small.
My point was you cannot transfer the policy to the new car, if you haven't bought the new car. What do you do in that limbo period between selling the old car, and buying the new one?

funkyrobot

18,789 posts

258 months

Wednesday 28th September 2016
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Interesting thread for me. My car is currently up for sale. If and when it sells, I'll need to park my insurance for a bit. I will find something else, but am in no hurry to do so.

I pay for my insurance annually, so it makes sense to find something else sooner rather than later.

WillG

87 posts

221 months

Thursday 29th September 2016
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It depends on your insurers view, as someone said you may be able to suspend the policy.

I would ring them as soon as you sell you old car, and tell them - this is important. See what they say, they may not care, if they want you to put another car on cover, tell them you are going to look at one tomorrow and you'll let them know. Then sting it out as long as you need. The likelihood is they will keep taking your money.

It's likely if the insurer want to forcibly cancel the policy they have to give you written notice, they can't just do it there and then.

TTommy

190 posts

155 months

Friday 30th September 2016
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I've just been through all this myself. Pain in the arse.

Hate insurance with a passion. Loophole this loophole that.

Why can't it just be made easy!

In the end I switched cars to keep my NCB and put other car on temporary for 39 a month. May sell it in a couple of months but unsure. Bit of a pain...