Car insurance cancel fee or lapse

[Deleted member 18121]

Afternoon all

Just sold my car this morning, insurance due to end mid July. Annual premium was £200.19

Reading the conditions of my insurance provider, a cancellation fee of £45 will apply if I cancel the policy. So in theory I'm better off letting the policy lapse in July as I won't get refund of more than the cancellation fee.

Are there any issues in leaving a policy live without owning the car still?

Cheers all

Adam

 

[PJ87]

Afternoon all

Just sold my car this morning, insurance due to end mid July. Annual premium was £200.19

Reading the conditions of my insurance provider, a cancellation fee of £45 will apply if I cancel the policy. So in theory I'm better off letting the policy lapse in July as I won't get refund of more than the cancellation fee.

Are there any issues in leaving a policy live without owning the car still?

Cheers all

Adam

You can't use NCD on 2 cars at once so if insuring another car you couldn't apply the NCD from this car to it

 

[Jamesbrown]

Not that I know of, I left mine running. Or should I say forgot!

 

[Maninblack4612]

This happened to me. When I rang to cancel they said that the cancellation fee exceeded the refund & called it quits. The didn't ask me for the difference.

 

[jim8flog]

Sounds like one of the companies that also has a change of car or other admin fee.
I would just let it run as (if you have it ) you would still have third party cover on another car which insured by someone else.

 

[rulefan]

Afternoon all

Just sold my car this morning, insurance due to end mid July. Annual premium was £200.19

Reading the conditions of my insurance provider, a cancellation fee of £45 will apply if I cancel the policy. So in theory I'm better off letting the policy lapse in July as I won't get refund of more than the cancellation fee.

Are there any issues in leaving a policy live without owning the car still?

Cheers all

Adam

Are you planning to insure another car soon? If you reinsure with them, they'll probably do a deal.

 

[Deleted member 18121]

Are you planning to insure another car soon? If you reinsure with them, they'll probably do a deal.

I've actually bought and been running a "new" car for a month now and my current companies quote was ridiculous so I went with another company.

I ended up phoning them about it to see what my options were.... No idea how she worked it considering such a short amount of time left on the policy, but she confirmed the £45 cancellation fee but somehow it ended that I only owed them £3.46 so they said not to bother and have just cancelled it.

Absolutely no clue how that's worked out in my favour .

 

[rulefan]

I've actually bought and been running a "new" car for a month now and my current companies quote was ridiculous so I went with another company.

I ended up phoning them about it to see what my options were.... No idea how she worked it considering such a short amount of time left on the policy, but she confirmed the £45 cancellation fee but somehow it ended that I only owed them £3.46 so they said not to bother and have just cancelled it.

Absolutely no clue how that's worked out in my favour .

Had you been paying by direct debit or standing order?

 

[Deleted member 18121]

Had you been paying by direct debit or standing order?

A single annual payment

 

[Bunkermagnet]

Be careful. If the new owner of the car doesn't have insurance, and the car is involved in an accident you could be liable as the car would be still insured, but your insurance.

 

[rulefan]

Be careful. If the new owner of the car doesn't have insurance, and the car is involved in an accident you could be liable as the car would be still insured, but your insurance.

The insurance will state which drivers are covered. For a £200 the policy will not cover any or unnamed drivers.

 

[Bunkermagnet]

The insurance will state which drivers are covered. For a £200 the policy will not cover any or unnamed drivers.

Correct, but if the new driver hasn't insurance and is involved in an accident it could prove very awkward and potentially leave you liable.

 

[Maninblack4612]

There's only one right answer. You no longer own the car, cancel the insurance. It won't cost you anything.

 

[rulefan]

Correct, but if the new driver hasn't insurance and is involved in an accident it could prove very awkward and potentially leave you liable.

Why would you (the original owner) be liable?