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Will I lose my no claim bonus if I sell my car?

I'm looking to sell my car soon and I'll be without a car for a while, it depends how long it takes me to find another car as the car I want is quite rare. I'm 6 months into my second year of driving. I got no claim bonus from first year. So once I sold my car, I have to cancel my insurance right but what will happen to my no claims bonus? Will I lose only second year or first one too?

(edited 9 years ago)

Reply 1

shaymarriott

You'll keep the first year but won't make it to the second. When you get another policy you can get 1 years NCB.

Reply 2

Emma:-)

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Original post by shaymarriott

You'll keep the first year but won't make it to the second. When you get another policy you can get 1 years NCB.

This.
Why dont you wait until you have a new car lined up before getting rid of your old one?

Reply 3

JC.

You could just leave the insurance running. You'll never claim as you have no car to crash.

Reply 4

Kayleighw27

Original post by JC.

You could just leave the insurance running. You'll never claim as you have no car to crash.

You could do this but it would be a very expensive no claims bonus.

Reply 5

shaymarriott

Original post by Kayleighw27

You could do this but it would be a very expensive no claims bonus.

Probably worth it in the long run...

Reply 6

Kayleighw27

Original post by shaymarriott

Probably worth it in the long run...

It depends on how much your policy is really but from what I've seen your age and number of years since you passed your test are much bigger factors than no claims bonus which doesn't seem to give a massive discount.

Reply 7

kernow24

Original post by JC.

You could just leave the insurance running. You'll never claim as you have no car to crash.

don't do this, if the new owner were to crash, your policy would pay out for any damage, and your insurer will come after you to recoup the settlement.

Reply 8

Sgt.Incontro

Original post by kernow24

don't do this, if the new owner were to crash, your policy would pay out for any damage, and your insurer will come after you to recoup the settlement.

Pretty sure insurance wouldn't pay out a dime, as the new owner wouldn't even be a listed driver on the policy.

Reply 9

mizzsnazzter

Original post by Sgt.Incontro

Pretty sure insurance wouldn't pay out a dime, as the new owner wouldn't even be a listed driver on the policy.

Pretty sure it's an offence not to inform your insurance provider when you get rid of a car... Or either way it's silly as if you cancel half way through the year you will get almost half your money back from cancelling

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Reply 10

Sgt.Incontro

Original post by mizzsnazzter

Offence in what way? Criminal? I wouldn't say so. The only way it might become a criminal offence is if you pretended that you crashed it (rather than the new buyer), tried to make a claim, and thus committed fraud.

I could be wrong here, interested to hear if anyone has expertise in this area.

Reply 11

domonict

your insurance is only valid under the arrangements made at time of contract.

So when you insure, you are asked "are you the legal owner?" and say "Yes". If you sell the car, you are obliged to tell the insurance company, as the owner has changed.

also, if that car then has an accident and a witness tells the victim the reg number, your name will pop up and you will have to prove that you weren't driving.

it's academic as the "gain" of constant insurance NCB for no driving benefit, is probably less than the premium that you're paying.

i.e. it will cost £500 to save £50.

(edited 9 years ago)

Reply 12

kernow24

Original post by Sgt.Incontro

Pretty sure insurance wouldn't pay out a dime, as the new owner wouldn't even be a listed driver on the policy.

doesn't really matter, under the road traffic act they would have to pay out, both insurers may squabble over liability on their part, but both policies on the car if the new owner is insured will become liable for 3rd party damages, if the new owner wasn't insured there would be a squabble with the old owners insurers and the MIB over liablity

And the insurer of the policy that wasn't cancelled will come after the previous owner to recoup their losses, if they were to pay out, there's been plenty of cases regarding this, one not so long ago involved a motorcyclist that sold his bike and kept the policy running, the new owner wasn't insured and was involved in a fatal accident, the old owners insurance became liable for the costs

Its no different to say having your car stolen, if the car is in an accident, the policy on the car is liable for 3rd party damages, then the insurer might try to recoup the losses from the thief if they are found, the insurer that had to pay out cant come after the policy holder to recoup the costs, as there wasn't any breach of contract on the part of the policy holder, but they can pursue the thief in such a case.

The road traffic act makes no stipulation that the person named on the policy needs to be driving for the liability of the insurer to be enforced, the insurers cant shirk their liability on a car that has a policy running, they can withdraw fully comp cover etc, but they cant withdraw 3rd party cover regardless of who the driver is at the time of any accident.

A little but on the case from White Dalton, a well respected firm of solicitors in the motorbiking community.

http://www.whitedalton.co.uk/motorbike-blog/2014/12/dont-leave-yourself-liable/

(edited 9 years ago)

Reply 13

JC.