Son has received a S172 on a car he sold with complications
Discussion
My son traded in his car back in March 22, he has proof as in the invoice from the dealer and the confirmation slip from DVLA confirming he isn't responsible for it
BUT he recently had a S172 come through as this car was involved in a RTC earlier this month and the driver is accused of DWDCA and failing to provide details - This should be easily sorted providing the above proof
The issue is on the advice of their partner
they decided not to cancel the insurance on the old car meaning it still has a policy in his name (or at least it did at the time of the accident)
I'm assuming from what I have read anecdotally that the third party if there is one could potentially claim on it
What implications will this have for him ?
BUT he recently had a S172 come through as this car was involved in a RTC earlier this month and the driver is accused of DWDCA and failing to provide details - This should be easily sorted providing the above proof
The issue is on the advice of their partner
they decided not to cancel the insurance on the old car meaning it still has a policy in his name (or at least it did at the time of the accident)I'm assuming from what I have read anecdotally that the third party if there is one could potentially claim on it
What implications will this have for him ?
I'm no expert but I don't see how there would be a claim. He wasn't the owner or the driver at the time.
You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
98elise said:
I'm no expert but I don't see how there would be a claim. He wasn't the owner or the driver at the time.
You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
He didn't contact the insurance company to inform them he didnt own the car though as far as they know he still owns it You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
I'm definitely no insurance expert, but if the new keeper failed to insure the car (an assumption, I know), therefore only your son's policy was active, and the vehicle was involved in an accident, then the third party is entitled to make a claim against a valid insurance policy?
If a car had been twoc'd or the driver was disqualified for example, the insurance policy would still be valid and therefore a third party could claim regardless of who was driving or their driving status? Even though the policy may have specific exemptions, such as 'driver must hold a valid licence' etc
I'm not sure there's a huge difference between the two scenarios, unless the insurance company has been specifically told.
Even if there are two insurance policies, it's easier for a third party to make a claim on whichever one they want, not sure they'd do much investigation onto which was the valid policy? Hedging their bets?
I'd only start worrying if the insurance company contacts him to say there's been a claim mind you.
If a car had been twoc'd or the driver was disqualified for example, the insurance policy would still be valid and therefore a third party could claim regardless of who was driving or their driving status? Even though the policy may have specific exemptions, such as 'driver must hold a valid licence' etc
I'm not sure there's a huge difference between the two scenarios, unless the insurance company has been specifically told.
Even if there are two insurance policies, it's easier for a third party to make a claim on whichever one they want, not sure they'd do much investigation onto which was the valid policy? Hedging their bets?
I'd only start worrying if the insurance company contacts him to say there's been a claim mind you.
There was a similar thread some time ago.
The previous owner didn't cancel and the car was involved in an accident.
The claim was made against the policy despite the car being sold etc..
He would need to declare the claim in future, I think.
What did the partner recommend not cancelling the insurance?
The previous owner didn't cancel and the car was involved in an accident.
The claim was made against the policy despite the car being sold etc..
He would need to declare the claim in future, I think.
What did the partner recommend not cancelling the insurance?
I fear that there may be a problem here if the new owner was uninsured for any reason.
https://www.whitedalton.co.uk/motorbike-blog/2013/...
https://www.whitedalton.co.uk/motorbike-blog/2013/...
98elise said:
I'm no expert but I don't see how there would be a claim. He wasn't the owner or the driver at the time.
You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
When I was insured with Tesco they didn’t allow me to do this - the car was sold a few days before renewal date and I wanted to let it run for a few more days to get the ncb, but they categorically told me I had to cancel the policy (costing me their admin fee and losing a years ncd) else they’d cancel it for me, which would leave a marker on my record for having cancelled insurance. You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
Wish I hadn’t rung them…
jmn said:
I fear that there may be a problem here if the new owner was uninsured for any reason.
/
Me too , hence my post /
I’m aware of that previous situation and this is my concern as to whether they can come after him for the cost of the claim
The current owner probably isn’t known or there would t be a s172 in the first place
I had a similar issue when I traded in a motorcycle a couple of years back. The dealer gave me a pretty good trade-in, but only if I handed it over to them immediately & then wait for the new bike to arrive later. There was an unexpected delay of 6 weeks - I informed my insurers who 'suspended' the insurance in order for me to keep my NCB. However, after 4 weeks they contacted me saying my policy was cancelled & therefore I lost 12 months NCB. It would have been in the region of £50, but looking at the OP's situation, I'm glad I went with informing my insurer & asking advice up front....
DodgyGeezer said:
of course there is always the chance he did actually cancel the policy and the insurance company just forgot to process it properly
i would imagine it was done to build up NCD, becuase that would be the only reason i can think. Now if they try to argue they did cancel when they didn't, starts entering the realms of fraud.Shappers24 said:
98elise said:
I'm no expert but I don't see how there would be a claim. He wasn't the owner or the driver at the time.
You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
When I was insured with Tesco they didn’t allow me to do this - the car was sold a few days before renewal date and I wanted to let it run for a few more days to get the ncb, but they categorically told me I had to cancel the policy (costing me their admin fee and losing a years ncd) else they’d cancel it for me, which would leave a marker on my record for having cancelled insurance. You don't have to cancel your insurance, you can just notify your insurance that you no longer own the car, and they will let it run to it's end in a suspended (for want of a better word) state.
I did that when I sold a car with a few months left, but wanted to get another years no claims.
Wish I hadn’t rung them…
Ouroboros said:
i would imagine it was done to build up NCD, becuase that would be the only reason i can think. Now if they try to argue they did cancel when they didn't, starts entering the realms of fraud.
It was done because he is a total trumpet and figured he wouldn’t get much money back so it wasn’t worth his time cancelling it I fear this may well be a very expensive mistake
When I sold a car in August 2021, I didn't tell the insurance company to cancel, looks like I may have been fortunate!
It's often to earn NCD as mentioned above, but I did it for another reason. I wanted to transfer the insurance to another vehicle I already had but was SORN getting repaired, in September 2021. The change of vehicle cover was calculated pro rata with no admin fee (I know not all insurance companies do this). Cost about £9 I think.
If I had cancelled the policy, there would have been a hefty cancellation charge and I'd have had to buy another 12 months policy only 4 weeks later. So in September, I just told them I needed to transfer cover to the other car which had 6 months left to run.
It's often to earn NCD as mentioned above, but I did it for another reason. I wanted to transfer the insurance to another vehicle I already had but was SORN getting repaired, in September 2021. The change of vehicle cover was calculated pro rata with no admin fee (I know not all insurance companies do this). Cost about £9 I think.
If I had cancelled the policy, there would have been a hefty cancellation charge and I'd have had to buy another 12 months policy only 4 weeks later. So in September, I just told them I needed to transfer cover to the other car which had 6 months left to run.
sixor8 said:
When I sold a car in August 2021, I didn't tell the insurance company to cancel, looks like I may have been fortunate!
It's often to earn NCD as mentioned above, but I did it for another reason. I wanted to transfer the insurance to another vehicle I already had but was SORN getting repaired, in September 2021. The change of vehicle cover was calculated pro rata with no admin fee (I know not all insurance companies do this). Cost about £9 I think.
If I had cancelled the policy, there would have been a hefty cancellation charge and I'd have had to buy another 12 months policy only 4 weeks later. So in September, I just told them I needed to transfer cover to the other car which had 6 months left to run.
In your circumstances I would have transferred it at the time of sale. No reason not to have insurance on a car on SORN.It's often to earn NCD as mentioned above, but I did it for another reason. I wanted to transfer the insurance to another vehicle I already had but was SORN getting repaired, in September 2021. The change of vehicle cover was calculated pro rata with no admin fee (I know not all insurance companies do this). Cost about £9 I think.
If I had cancelled the policy, there would have been a hefty cancellation charge and I'd have had to buy another 12 months policy only 4 weeks later. So in September, I just told them I needed to transfer cover to the other car which had 6 months left to run.
Mercdriver said:
Surely the new owner or the other driver involved have no claim on your insurance, unless you gave permission for the new owner to drive the car if it was insured for any driver.?
If the driver at the time of the incident didnt have any insurance, then the other party is able to claim from a valid policy on the vehicle, As the police have sent all the paperwork to the OP son, it would appear he may also be showing as the RK as well.His insurers will ask if he has given permission for the other driver to drive the vehicle knowing he isnt insured (which technically he has) which also may be a criminal offence, although I cant imagine the police would pursue that.
It might be worth doing an ASKMID to see if there is more than one policy, and having that available to provide if someone does come looking for info.
The police may provide RK and Insurance details to the other party for them to pursue a claim, which by the sounds of things, will be the OP sons details.
Smurfsarepeopletoo said:
If the driver at the time of the incident didnt have any insurance, then the other party is able to claim from a valid policy on the vehicle, As the police have sent all the paperwork to the OP son, it would appear he may also be showing as the RK as well.
The first post states that he had received notification that he was no longer the registered keeper.Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff