Cancel insurance within the final month

[Toonshorty]

I part exchanged my old car in against a new one earlier this month, but haven't yet cancelled the insurance policy against the old car and I have a separate policy for my new car. I've just had the renewal notice through and intend to let the insurer know that I don't want the policy to renew, but there is another two weeks left on the policy.

If I cancel two weeks before the standard renewal date, will the insurance company still charge me the usual £50 scam tax admin fee?

What are the rules against insuring a car you no longer own? I'm guessing any claim against it could potentially be held against yourself? I'm also guessing you wouldn't lose the NCD for the year if you cancelled now, seeing as you can use a renewal as proof of NCD before the policy expires anyway?

Ideally would like to just let the policy lapse but not sure how best to handle it.

[LoonR1]

Toonshorty said:

I part exchanged my old car in against a new one earlier this month, but haven't yet cancelled the insurance policy against the old car and I have a separate policy for my new car. I've just had the renewal notice through and intend to let the insurer know that I don't want the policy to renew, but there is another two weeks left on the policy.

If I cancel two weeks before the standard renewal date, will the insurance company still charge me the usual £50 scam tax admin fee?

What are the rules against insuring a car you no longer own? I'm guessing any claim against it could potentially be held against yourself? I'm also guessing you wouldn't lose the NCD for the year if you cancelled now, seeing as you can use a renewal as proof of NCD before the policy expires anyway?

Ideally would like to just let the policy lapse but not sure how best to handle it.

1. They shouldn't charge you any more than is available for refund as a maximum. If a policy has lots to refund then they can charge you a reasonable admin fee.

2. You can not legally insure a vehicle that you no longer own and should cancel it

3. If the purchaser of your old car doesn't insure it and has an accident then your insuramce is paying out and your NCD and claims record will be affected as if you were the driver.

4. You will lose the NCD for the year as you didn't run it for the full year. You can blag it if up you like, but you're technically committing insuramce fraud which is a criminal offence.

Now my questions:
Why have you taken out a new policy?
Have you used your NCD at is currently allocated to the existing policy?
Why didn't you just change your existing policy over?

The use of the word "scam tax" says a lot about you. Do you work for free? Does your employer charge their clients for the work you do?

[Toonshorty]

LoonR1 said:

1. They shouldn't charge you any more than is available for refund as a maximum. If a policy has lots to refund then they can charge you a reasonable admin fee.

2. You can not legally insure a vehicle that you no longer own and should cancel it

3. If the purchaser of your old car doesn't insure it and has an accident then your insuramce is paying out and your NCD and claims record will be affected as if you were the driver.

4. You will lose the NCD for the year as you didn't run it for the full year. You can blag it if up you like, but you're technically committing insuramce fraud which is a criminal offence.

Now my questions:
Why have you taken out a new policy?
Have you used your NCD at is currently allocated to the existing policy?
Why didn't you just change your existing policy over?

The use of the word "scam tax" says a lot about you. Do you work for free? Does your employer charge their clients for the work you do?

My current insurer wouldn't insure me on my new car so had to take out a new policy with a different insurer.

I have used the current NCD but surely you would always have some cross-over if you switch insurers. The new policy was taken out once I had the renewal notice for my old policy.

[Roo]

So you've started a new policy stating the amount of years NCD from your renewal notice even though you haven't actually accrued this year's yet?

Not a good idea.

[glasgowrob]

Personally I'd just tell current insurers you don't intend to renew with them and leave it at that

[LoonR1]

Toonshorty said:

My current insurer wouldn't insure me on my new car so had to take out a new policy with a different insurer.

I have used the current NCD but surely you would always have some cross-over if you switch insurers. The new policy was taken out once I had the renewal notice for my old policy.

Your current insurer should be aware that you've most likely sold your car already? You really should tell them.

There is rarely any overlap when you switch insurers, most do it at renewal. Those changing cars midterm will still be able to be insured with their existing insurers in by far the majority of circumstances. You're trying to fudge this to your advantage and get someone to agree with you. I won't, but don't worry someone will be along soon enough to tell you what you want to hear.

[peteA]

Wasn't there a thread about this re a motorbike and there was an accident with a fatality and the sellers insurance paid out but recovered the costs from the seller via legal means...and it was considerable...way more than NCB and whatever your insurance costs!

Apologies if the above was a myth!

I know where your coming from re only a couple of weeks but I'd be honest with both insurers - just my thoughts and hope you get sorted

[anonymous-user]

You cant just add an extra years NCB. 'Oh well I nearly had the policy a whole year'

[LoonR1]

peteA said:

Wasn't there a thread about this re a motorbike and there was an accident with a fatality and the sellers insurance paid out but recovered the costs from the seller via legal means...and it was considerable...way more than NCB and whatever your insurance costs!

Apologies if the above was a myth!

I know where your coming from re only a couple of weeks but I'd be honest with both insurers - just my thoughts and hope you get sorted

There was, but it was very much scaremongering. The reality is what I've described above and what you've described minus the recovery from the policyholder as that's extremely unlikely to be attempted. Where it is attempted any solicitor with half an ounce of competency would be able to make it go away without much effort.

[Toonshorty]

Seems like I've made the mistake in thinking that your NCD could be counted once you had your renewal though.

I'm guessing the best action is going to be to inform the old insurer that I've sold the car and need to cancel the policy two weeks before expiry and pay them a £50 admin fee.

Then I'll need to phone my new insurer and tell them that I'm actually only on 1 years NCD rather than 2 because I cancelled the older policy early. Can they just modify the existing policy or will they need to cancel it and arrange a new one? I am at least within the first 14 days of the new policy so cancellation shouldn't be too expensive if needs be.

Expensive mistake I guess, just seems really silly for the sake of two weeks.

[LoonR1]

Toonshorty said:

Seems like I've made the mistake in thinking that your NCD could be counted once you had your renewal though.

I'm guessing the best action is going to be to inform the old insurer that I've sold the car and need to cancel the policy two weeks before expiry and pay them a £50 admin fee.

Then I'll need to phone my new insurer and tell them that I'm actually only on 1 years NCD rather than 2 because I cancelled the older policy early. Can they just modify the existing policy or will they need to cancel it and arrange a new one? I am at least within the first 14 days of the new policy so cancellation shouldn't be too expensive if needs be.

Expensive mistake I guess, just seems really silly for the sake of two weeks.

You knew exactly what you were doing. Your guesses in your OP were more or less spot on and you've passed some comments that are dpsufficemtly knowledgeable to demonstrate that you're not as clueless as you want to appear.

Whether you want to continue to play the system is your choice, but hiding behind "it's only two weeks" is a bit duff. Where do you draw the line?

[roofer]

Your renewal had your NCD stated on it ? And you sent that to you new insurer when they asked for proof ? Just wondering ....

[Eclassy]

With 2 weeks to go on the old policy, I'd chance it. Not because of any gain but I fear you may get more hassle than you bargained for if you come clean e.g cancelled insurance which you'll then have to declare everytime and explain.

Are you feeling lucky?

[t400ble]

Cancel it

If the car is involved in an accident you could be in trouble

[backwoodsman]

peteA said:

Wasn't there a thread about this re a motorbike and there was an accident with a fatality and the sellers insurance paid out but recovered the costs from the seller via legal means...and it was considerable...way more than NCB and whatever your insurance costs!

Apologies if the above was a myth!

I know where your coming from re only a couple of weeks but I'd be honest with both insurers - just my thoughts and hope you get sorted

You're right, it happened.

http://www.visordown.com/motorcycle-news--general-...

[LoonR1]

Eclassy said:

With 2 weeks to go on the old policy, I'd chance it. Not because of any gain but I fear you may get more hassle than you bargained for if you come clean e.g cancelled insurance which you'll then have to declare everytime and explain.

Are you feeling lucky?

There you go OP, the one person who agrees with you. He's wrong and his other comments about cancelled insurance are wildly wrong too.

[btcc123]

Why would your insurance company not insure you for your new car.What was the old and new cars.

[DragsterRR]

backwoodsman said:

peteA said:

Wasn't there a thread about this re a motorbike and there was an accident with a fatality and the sellers insurance paid out but recovered the costs from the seller via legal means...and it was considerable...way more than NCB and whatever your insurance costs!

Apologies if the above was a myth!

I know where your coming from re only a couple of weeks but I'd be honest with both insurers - just my thoughts and hope you get sorted

You're right, it happened.

http://www.visordown.com/motorcycle-news--general-...

Interesting one that.
So if the scrote had had the bike stolen from him then the insurance company would have paid the full wack for replacement to Mr Duffy?
Yeah I thought not.

[DragsterRR]

LoonR1 said:

1. They shouldn't charge you any more than is available for refund as a maximum. If a policy has lots to refund then they can charge you a reasonable admin fee.

2. You can not legally insure a vehicle that you no longer own and should cancel it

3. If the purchaser of your old car doesn't insure it and has an accident then your insuramce is paying out and your NCD and claims record will be affected as if you were the driver.

4. You will lose the NCD for the year as you didn't run it for the full year. You can blag it if up you like, but you're technically committing insuramce fraud which is a criminal offence.

Now my questions:
Why have you taken out a new policy?
Have you used your NCD at is currently allocated to the existing policy?
Why didn't you just change your existing policy over?

The use of the word "scam tax" says a lot about you. Do you work for free? Does your employer charge their clients for the work you do?

Surely 2 and 3 are mutually exclusive.
You either are insuring it or you arent?

[LoonR1]

DragsterRR said:

Interesting one that.
So if the scrote had had the bike stolen from him then the insurance company would have paid the full wack for replacement to Mr Duffy?
Yeah I thought not.

Good to see that your understanding of motor insuramce is as close to zero as possible.

The cover would be for innocent third parties impacted by the scrote, no cover would exist for own damage.