Car Insurance Question

[donchano]

I am about to buy a new car and part-ex my old car. The insurer for my old car wants to charge a £55 cancellation fee but the policy has only a few weeks left to run, so I would still be out of pocket even after the small refund to which I'd be entitled. Can I just let the policy run its course to the end date without cancelling even though I won't own the car any more?
I don't want to contravene any rules or regulations by not disclosing to my current insurer that the car's been sold. TIA for any advice.

[davebro]

don't see why not (I'm not a legal eagle tho').

[bhg481]

Are you not transferring the policy to the new car? If that is the case there will be a transfer fee but not a cancellation fee.

[barry1010]

You must cancel the insurance - if the new owner has an accident it could affect your insurance score.

[davebro]

Thinking back I changed cars just before my insurance ran out. (I didn't tell my "old" insurer). When I applied to a different firm for insurance on the new car I was refused because I still had the old insurance. When I explained that I was trading in the old car & would only have one car insured they accepted me.

[THECORBYLOON]

You don't need to cancel it but I read the new owner could claim on your insurance.

I've no idea how often that happens or even how a new owner can find out it's insured with another company but it's possible.

[donchano]

Thanks all for the advice. I think I will cancel the policy and pay the admin fee. I did ask them for a quote for the new car but it was too high and will still work out cheaper switching to a new insurer even with the cancellation fee.

[davebro]

£55 seems a lot for an admin fee requiring little or no work!
I've seen others charge £25.

[Peter Pedant]

yes

from the time you sell it ( transfer title ) you wont be able to claim and the buyer cant claim on yours either

Insurance cancellation is a funny business - some do it pro rata - two monfs off 12 then you get 1/6 back

BUT some ( medical negligence ) they say - oh, and pocket the whole lot - nil back whatever

[goodgoalie]

Are you insuring the new car with the same insurer as the old? If so, there should just be a 'transfer fee', which I think would be less than £55.

[gingejbee]

You could insure the new car with the existing insurer (paying a small amount extra) for the remaining few weeks and THEN insure with the new company.
I've never been charged a fee for transferring cover to a new car, when doing it online.

[Peter Pedant]

// You don't need to cancel it but I read the new owner could claim on your insurance.//
well he cd but wdnt get very far

I sold on a car ( jag I think ) to Squires ( later he insisted that his books were straight ) and it ended up running down a leddy and then abandoned in Chapel en le Frith ( where ) and they wanted me to pay for towage etc., ( and leddy) And I was able to show that I had sold the car on and I had no title - and was therefore as non driver, uninsured ( whilst I wasnt driving it)

dunno what happened - nuffin to do wiv me guv.

[barry1010]

"The general rule is that car insurance ties to the car itself, not the owner or driver. The policy covers a person driving the vehicle under your permission. Sale of vehicle implies consent, meaning that the buyer can freely drive under your insurance without the need to file for their own.

Continuing to pay the insurance premium not only means you’re wasting money, but it also puts you at risk of ruining your insurance score. If the new owner gets involved in a car crash, the incident will be logged into your record, and you will have to pay for deductibles and excess costs not covered by the policy."

https://www.jdpower.com/cars/shopping-guides/when-to-cancel-car-insurance-after-selling-a-car

"When should I cancel if I sell my car?

Immediately. If you no longer own the car and you’re not replacing it, there is no point paying for cover you don’t need.

Failure to cancel could also result in a claim against your insurance if the new owner has an accident."
https://www.moneysupermarket.com/car-insurance/cancelling-car-insurance/

[gingejbee]

^^barry...that says "and not replacing it"....which the OP is doing.

[barry1010]

Yes, the OP is buying another car but using a different insurance company.

[gingejbee]

,,which he wouldn't be doing with my 11.41 suggestion.

[donchano]

Thanks all, I will cancel to be on the safe side. I don't want to stay with the old insurer because they are more than £100 dearer for the new car, plus transferring the policy would incur an admin fee of £25 on top.

Gingbee, thanks for the suggestion but a short-term policy with the old insurer for the new car would still work out more expensive I think.

[donchano]

As a postscript to all that, I rang up to cancel and spoke to a different call handler who didn’t charge me any cancellation fee at all. They just kept the £20 refund I was owed for early termination. Result!
Classic case of the left hand not knowing what the right hand is doing?