Canceling Insurance

[98elise]

I've just sold my daily driver and the wife and I are going to share her car. I'm named on her insurance, and on my kids insurances so I really don't need a daily myself.

My insurance has about 2 month's to run so a cancellation charge would wipe out any refund, and I could do with the extra year no claims due to an accident a few years ago.

Is there any need for me to cancel the insurance or can I just let it expire in May?

[B'stard Child]

If you'd scrapped the car I would have said no (because no risk)

If you've sold it MID will continue to show car is insured

I'm sure there was a case (on PH where some did similar) and there was an accident where his policy was claimed on but it was a long while back

[98elise]

B'stard Child said:

If you'd scrapped the car I would have said no (because no risk)

If you've sold it MID will continue to show car is insured

I'm sure there was a case (on PH where some did similar) and there was an accident where his policy was claimed on but it was a long while back

That's the sort of thing that concerns me.

[cuprabob]

When I had to do this in the past, my insurance company suspended the policy and refunded me pro-rata for the time it was suspended when it expired. It was their suggestion, as the cost to cancel was more than the refund. Maybe worth discussing with your insurance company. Just tell them you intend to buy another car and let it expire.

[croissant]

Can you not just transfer the remainder of the policy to your wifes car and let it run, even though it has another policy?

[MontyPythonX]

Is it illegal to have 2 insurance policies on one car?

[PistonRings]

MontyPythonX said:

Is it illegal to have 2 insurance policies on one car?

No, but you must only claim on 1 policy in event of an accident.

[PorkInsider]

98elise said:

B'stard Child said:

If you'd scrapped the car I would have said no (because no risk)

If you've sold it MID will continue to show car is insured

I'm sure there was a case (on PH where some did similar) and there was an accident where his policy was claimed on but it was a long while back

That's the sort of thing that concerns me.

And even worse would be if the person who bought your car crashed into someone else and your insure paid out then came after you to refund them...

https://rmsmotoring.com/forum/threads/do-you-cance...

[98elise]

cuprabob said:

When I had to do this in the past, my insurance company suspended the policy and refunded me pro-rata for the time it was suspended when it expired. It was their suggestion, as the cost to cancel was more than the refund. Maybe worth discussing with your insurance company. Just tell them you intend to buy another car and let it expire.

That may be the answer. My company will suspend a policy when you have a car written off but have not yet bought another.

I'll give them a call and see what they suggest. They must have been through this before.

[98elise]

croissant said:

Can you not just transfer the remainder of the policy to your wifes car and let it run, even though it has another policy?

That's a good idea if they won't suspend it. There are no charges for changing cars so it wouldn't be difficult.

[Sheepshanks]

PistonRings said:

MontyPythonX said:

Is it illegal to have 2 insurance policies on one car?

No, but you must only claim on 1 policy in event of an accident.

You'll probably turn out to be an expert, but I don't think that's right - depending on the nature of the incident, the insurance companies share the liability. It can be tricky to work out which is why they don't like it being done.

[jondude]

The problem is any adjustment you make is going to cost an admin fee. I would not have thought the buyer can claim on your insurance as he is not covered by it (unless you have any driver?).

Any other car you can transfer it to for 2 months? (It will still cost you to do so though)


Re the NCD I tend to find there is so much competition to get new customer only rates out there on comparison sites that NCD is beginning to mean less and less in the actual quote you get - for they intend to shaft you big time at renewal.

I'd be inclined to cancel unless you know the buyer and that the odds of a trouble-free two months are high.

[TwigtheWonderkid]

Sheepshanks said:

PistonRings said:

MontyPythonX said:

Is it illegal to have 2 insurance policies on one car?

No, but you must only claim on 1 policy in event of an accident.

You'll probably turn out to be an expert, but I don't think that's right - depending on the nature of the incident, the insurance companies share the liability. It can be tricky to work out which is why they don't like it being done.

They will usually only share liability if it isn't clear which policy is the appropriate policy to cover the incident. So if you sell a car and you had any driver cover on it, and you don't cancel, and the new owner takes out a new policy, and he crashes, although their are 2 policies covering him to drive that car, only his one will pay out.

But, if you switched insurers from renewal, and you did a new policy from 00:01, but your old policy didn't expire until noon, and you have an accident at 9am, then they would share it, because both policies are equally valid and relevant.

[Sheepshanks]

TwigtheWonderkid said:

They will usually only share liability if it isn't clear which policy is the appropriate policy to cover the incident.

Yes - I think I covered that with "depending on the nature of the incident".

[98elise]

jondude said:

The problem is any adjustment you make is going to cost an admin fee. I would not have thought the buyer can claim on your insurance as he is not covered by it (unless you have any driver?).

Any other car you can transfer it to for 2 months? (It will still cost you to do so though)


Re the NCD I tend to find there is so much competition to get new customer only rates out there on comparison sites that NCD is beginning to mean less and less in the actual quote you get - for they intend to shaft you big time at renewal.

I'd be inclined to cancel unless you know the buyer and that the odds of a trouble-free two months are high.

Direct line change for cancellations, but not policy amendments.

You're right on the NCD though. My NCD wasn't protected yet my premiums hardly went up when I had an accident (not my fault). I didn't get shafted at renewal either. Either way I'm under 2 month's from the policy ending so would like to pick up the whole extra year.

[98elise]

98elise said:

cuprabob said:

When I had to do this in the past, my insurance company suspended the policy and refunded me pro-rata for the time it was suspended when it expired. It was their suggestion, as the cost to cancel was more than the refund. Maybe worth discussing with your insurance company. Just tell them you intend to buy another car and let it expire.

That may be the answer. My company will suspend a policy when you have a car written off but have not yet bought another.

I'll give them a call and see what they suggest. They must have been through this before.

Just off the phone with my insurance co (Direct Line) and they were happy to suspend. I told them the car was sold and I didn't intend to replace it but that wasn't a problem.

[cuprabob]

98elise said:

98elise said:

cuprabob said:

When I had to do this in the past, my insurance company suspended the policy and refunded me pro-rata for the time it was suspended when it expired. It was their suggestion, as the cost to cancel was more than the refund. Maybe worth discussing with your insurance company. Just tell them you intend to buy another car and let it expire.

That may be the answer. My company will suspend a policy when you have a car written off but have not yet bought another.

I'll give them a call and see what they suggest. They must have been through this before.

Just off the phone with my insurance co (Direct Line) and they were happy to suspend. I told them the car was sold and I didn't intend to replace it but that wasn't a problem.

Youre sorted then

[Mr Pointy]

I'm sure there was a thread not long ago where somoeone sold a car & didn't cancel the insurance & got into all sorts of problems when the buyer had an accident but was found not ot have insured the car. The sellers insurance company were on the hook as their's was the only valid insurance.

[98elise]

Mr Pointy said:

I'm sure there was a thread not long ago where somoeone sold a car & didn't cancel the insurance & got into all sorts of problems when the buyer had an accident but was found not ot have insured the car. The sellers insurance company were on the hook as their's was the only valid insurance.

Yes, the second post in the thread said something similar. I can see having a live policy on a sold car being a risk.

[B'stard Child]

98elise said:

Mr Pointy said:

I'm sure there was a thread not long ago where somoeone sold a car & didn't cancel the insurance & got into all sorts of problems when the buyer had an accident but was found not ot have insured the car. The sellers insurance company were on the hook as their's was the only valid insurance.

Yes, the second post in the thread said something similar. I can see having a live policy on a sold car being a risk.

Slow day and I've tried to find the thread but failed