Insurance Policy No Claims after selling car

[Mouse1903]

Morning all, to cut a long story short my insurance renewal is due mid-April but I plan on selling the car by end of March. Can I leave the policy to "run on" to allow me to gain the year's no claims or do I have to cancel this as soon as I sell the car?

(Mods, feel free to move if I've used the wrong forum)

[xRIEx]

Strictly speaking, you should cancel the policy when your insurable interest in it ends (when you sell it); in practice, you're not going to get any refund that close to renewal so it's to your advantage to let it run. If a policyholder forgets to cancel a policy when a vehicle is sold, any cancellation is calculated from the point of notification, not backdated to point of sale, so it's the same thing.

If they issue a renewal notice it should say how many years NCB you have in April, then just instruct them to lapse it.

[TooMany2cvs]

Your call.

http://www.dailyrecord.co.uk/news/scottish-news/sc...

Bloke sells bike. Buyer turns out to be banned, doesn't insure bike, then smears self over car.
Seller hasn't cancelled policy, which means his insurers are still on-risk for the bike...

[xRIEx]

I've changed my mind, what he said ^

[Rick101]

Done it loads of times and never had an issue. Sometimes closer to 6 months.
The chance of selling to someone who then can't afford/doesn't buy insurance AND then goes on the have a claim is pretty minimal IMO.

[Spangles]

Rick101 said:

Done it loads of times and never had an issue. Sometimes closer to 6 months.
The chance of selling to someone who then can't afford/doesn't buy insurance AND then goes on the have a claim is pretty minimal IMO.

One phone call vs the chance of a massive bill? Hmmm, tricky.

[Speed Badger]

Why not sell the car mid-April?

[Rick101]

Spangles said:

One phone call vs the chance of a massive bill? Hmmm, tricky.

Loss of a years no claims bonus potentially worth hundreds Vs letting it run for two weeks.

[KungFuPanda]

Just transfer the policy to one of your other vehicles if you own one. At least then, you're not in the hands of some oink who's just bought your car.

[Spangles]

Rick101 said:

Spangles said:

One phone call vs the chance of a massive bill? Hmmm, tricky.

Loss of a years no claims bonus potentially worth hundreds Vs letting it run for two weeks.

I see your point. Still not a risk I'd like to take. I had nearly the same thing, sold a bike to a friend, forgot to cancel insurance, got a phone call a few weeks later about an accident I'd been involved in. Turns out my friends details had been taken down wrong at the scene and I was next on the list. Sorted quite quickly as my chum was insured.

[MethylatedSpirit]

Admiral let me "suspend" cover on the car and let the policy run to the end.

I got a pro rata "refund" of the policy cost and an extra years no claims.




Give your insurer a phonecall to see what your options are

[ahenners]

What MethylatedSpirit suggested sounds the best option if your insurer will let you do this. The other possibility, would be to sell the car after your renewal? I appreciate that you'd have to pay for another year, cancel and then get a refund minus any cancellation + pro rata usage, but still potentially better than losing NCB or leaving the insurance running on something you no longer own.

[amstrange1]

MethylatedSpirit said:

Admiral let me "suspend" cover on the car and let the policy run to the end.

This is the right way of doing it!
If that's not an option, find a mate with an uninsured project car and transfer the policy to that for the remaining month or so.