Maintain insurance on sold car

Squeaksoutloud

I sold my car privately at the weekend and currently driving a rental (extremely cheap this time of year and makes me wonder why buy one for a while yet as it seems less than depreciation!)until I get a new one.

Car ownership transfer posted but still being processed as just checked online.

The policy for the car I sold doesn't end until start of March and I am keen to maintain it to get to that point for 2 reasons:

1. get the extra year no claims bonus. Is this possible?
2. In all likelihood I will have bought a new car before then and would like to just be able to transfer the policy instead of cancelling and restarting.

The new owner has presumably transferred his policy already - will this be flagged to his insurer that my policy is still there? Will my insurer be aware of a change of ownership?

Thanks in advance.

Sue Pa Key Pa

You cannot maintain insurance on a car you don't own and for technical reasons you shouldn't want to either, as your policy could be brought in to play for any claim involving the new owner

Squeaksoutloud

Sue Pa Key Pa wrote: »

You cannot maintain insurance on a car you don't own and for technical reasons you shouldn't want to either, as your policy could be brought in to play for any claim involving the new owner

Thanks. I would have thought my policy was essentially null and void as I would no longer be the registered owner. So In situation where someone sells a car and doesn't buy a new one for 2 weeks I need to cancel policy, send back disc, lose 0.75 of the year that I have built up in no claims then go looking for a new policy once new car purchased. Painful! I might take the risk if I manage to get my new car sorted in next 2 weeks and just transfer. If goes on into new year cancel.

Sue Pa Key Pa

Squeaksoutloud wrote: »

Thanks. I would have thought my policy was essentially null and void as I would no longer be the registered owner. So In situation where someone sells a car and doesn't buy a new one for 2 weeks I need to cancel policy, send back disc, lose 0.75 of the year that I have built up in no claims then go looking for a new policy once new car purchased. Painful! I might take the risk if I manage to get my new car sorted in next 2 weeks and just transfer. If goes on into new year cancel.

Ask your insurer to suspend the policy as you hope to replace the vehicle shortly. They will allow this up to your renewal date and they will credit your account. It often happens that their system will automatically allow the year's bonus at renewal. Worth a shot

kadman

Sue Pa Key Pa wrote: »

You cannot maintain insurance on a car you don't own and for technical reasons you shouldn't want to either, as your policy could be brought in to play for any claim involving the new owner

Says who.

Is it illegal.?

Its my understanding that in the event of an accident, any claim will be divided between the 2 companies, so effectively reducing each insurers payout 50%, but maintaining each insurers full premium.

Win/win for each company.

Sue Pa Key Pa

kadman wrote: »

Says who.

Its my understanding that in the event of an accident, any claim will be divided between the 2 companies, so effectively reducing each insurers payout 50%, but maintaining each insurers full premium.

Win/win for each company.

Your understanding is wrong

notharrypotter

I sold my car privately at the weekend and currently driving a rental

Read small print of rental agreement, over a certain time frame they will consider it a lease and this can be expensive.
Otherwise keep renting for short periods of when you need it.

The policy for the car I sold doesn't end until start of March and I am keen to maintain

Concept of insurable interest comes into play.
Post 4 below is good advice

goldenhoarde

kadman wrote: »

Says who.

Is it illegal.?

Its my understanding that in the event of an accident, any claim will be divided between the 2 companies, so effectively reducing each insurers payout 50%, but maintaining each insurers full premium.

Win/win for each company.

You have to have an insurable interest in the car and if you sold it you don't. As per post above

That being said why would you want to be on the hook for a potential claim that will only 100% at least double your renewal if you have an open claim. Might serve the insurance company but won't serve the OP

LpPepper

kadman wrote: »

Says who.

Is it illegal.?

Its my understanding that in the event of an accident, any claim will be divided between the 2 companies, so effectively reducing each insurers payout 50%, but maintaining each insurers full premium.

Win/win for each company.

It's a basic principle of insurance - you can't insure what you don't own/have a viable interest in.

neilthefunkeone

When i sold my car last year i rang the insurance company to tell them i sold the car and remove from policy. I was planning to buy a new car but wouldnt be for 2 months. They just kept my policy as was and told me to call back when i got another car.

They didnt seem bothered that the car was not registered in my name.. this was 123 by the way.

NUTLEY BOY

kadman wrote: »

Says who.

Is it illegal.?

Its my understanding that in the event of an accident, any claim will be divided between the 2 companies, so effectively reducing each insurers payout 50%, but maintaining each insurers full premium.

Win/win for each company.

No, it is not illegal for the seller but it is not lawful .

By any chance if the buyer thinks that the seller's insurance will cover him he is in error too. The buyer has no contract with the seller's motor insurers. Once the seller terminates his ownership of the vehicle that also terminates his legal entitlement to continue cover on the car i.e. insurable interest ceases.

Contribution between insurers (due to dual insurance) would not arise as the seller's policy would no longer be operative in respect of the sold vehicle.