Any -ve in letting insurance lapse on scrapped car?

[anonymous-user]

I've recently scrapped a car which had about two months' insurance left to run (premium paid annually).

I doubt anything would be refunded on the policy - which also mentions a £50 'cancellation fee'....

Rather than paying said fee, is there any downside to just letting the policy run its course and not renewing?

There is absolutely no chance of the scrapped car returning to the road.

[Alexxc]

You would gain a years no claims if you allow it to complete, depending on how many you already have banked, it may be worth it.
Not sure of any risks it may leave you open to having it insured still whilst scrapped however.

[mcflurry]

AFAIK the problem is if the scrappy didn't crush the car, someone took it out on the road without their own new insurance and causes a crash..

[Shiv_P]

mcflurry said:

AFAIK the problem is if the scrappy didn't crush the car, someone took it out on the road without their own new insurance and causes a crash..

Then it would just claim on the new insurance right, old existing would be untouched

[CanAm]

Shiv_P said:

mcflurry said:

AFAIK the problem is if the scrappy didn't crush the car, someone took it out on the road without their own new insurance and causes a crash..

Then it would just claim on the new insurance right, old existing would be untouched

As McFlurry says, if there is no new insurance, the OP's insurance would pick up any TP claim; his insurer would not be best pleased by this and would attempt to recover from the OP.

[anonymous-user]

Just to re-iterate, there really is no chance of the car ever returning to the road....

[NikBartlett]

Technically you don't own the vehicle anymore so you would need to inform the insurance company of a change in ownership. If the vehicle has indeed now been scrapped, eg is now a small cube of metal, then essentially you are trying to complete a years no claims fraudulently as vehicle does not actually exist anymore. Either way imho you are on dodgy ground if you were caught out.

[anonymous-user]

Thanks, Nik - the policy has around 14 years' NCD accrued, so I doubt that would really be an issue!