NCD question

Matt82 · 16 Nov 2011 at 10:53

imagine you took out a policy for a car. part way into the policy you sold the car, possibly removed the car from the poicy

after a year the policy has expired, has not auto renewed.

would 1 NCD be earned from that? in theory they had a policy, and didnt claim, surely youre entitled to the NCD?

Mucky_Pup · 16 Nov 2011 at 10:57

I imagine if you removed the car from the policy, the insurers would in effect cancel the policy and refund you any premium, so you lose the years no claims. If you sold the car, and didn't tell them about it, you might get away with it, just as if you had scrapped the car and didn't tell them about it. Might become a problem if the new owner has an accident and they look up to see who's insuring it, i.e. if it was a hit and run, and all they had was the number plate to trace who owned/insurers were.

You're not supposed to insure something you have no insurable interest in, I think, it's a bit of a grey area.

[TW]Fox · 16 Nov 2011 at 11:02

You can't insure nothing.

Matt82 · 16 Nov 2011 at 11:07

so its important whether the car was removed... knowing the policyholder, i would be very suprised if they informed the insurer at all!

Mucky_Pup · 16 Nov 2011 at 13:58

Matt82 said:
so its important whether the car was removed... knowing the policyholder, i would be very suprised if they informed the insurer at all!

are you saying you know someone who's sold their car, and are saying they're still insuring it to retain the no claims at the end of the policy? I'm confused.

Matt82 · 16 Nov 2011 at 14:01

they sold the car, ive no idea if they informed the insurer (i dont think they would have) and theyre questioning if they get the NCD.

i thought they would, as they took out a policy and didnt claim during that year.

Lum · 16 Nov 2011 at 14:07

Best way to keep your NCD in this situation is to buy a really cheap to insure banger and insure it for 1000 miles a year.

That said if it was only a few weeks away, I'd probably just "forget" to tell the insurance and delay sending off the logbook, but still put the correct sale date on the logbook in case of any speeding tickets.

Mucky_Pup · 16 Nov 2011 at 14:08

If they've sold the car, and not told the insurers they'll get the no claims when the policies ends, unless the insurers find out somehow that the person doesn't own the car anymore and they'll likely cancel the policy.

If they told the insurers, then they've either swapped the policy over to a new car, in which when the policy runs out they'll have the no claims, or they've told the insurers that the car has been sold, and the insurers will likely have cancelled the policy and refunded whats left of the premium, in which they wouldn't usually get no claims for part of a year.

So say for example; your friend sold his car this September, and his policy ended yesterday, and he never told his insurer when he sold the car in September, so for the policy held from 15th November 2010 - 15th November 2011 he would get a years no-claims.