Should I cancel my insurance policy before selling my car?

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Hi there,

I'm going to sell my car in the next couple of days but my insurance policy expires in 2 months. I have already paid the insurance premium so money is no object. Is there a law out there that says you cannot stay insured on a car that you have sold or could I stay insured on it until my renewal is due so I get my no claims??

Thank you

1 Reply

gices Level 6

Lee,

That's quite a dilemna! If you cancel your insurance policy before the 12 months period, you won't get the no claims bonus for that period, even if you've just got 2 months left. It's either you complete the 1 year or nothing. If you sell your car and leave the insurance in your name, you will be liable for any claims arising from that vehicle.

So if you really wanted to get the no claims discount, you should really sell after 2 months. By wanting to protect your no claims, you are also running the risks that if the person who is buying your car has an accident after you've sold it, you will lose your no claims discount and will have to pay for damages.

Sell your car first, then cancel your insurance.