If you have decided to scrap your car, it is important that you take a methodical approach to the process, ensuring you have informed the necessary people and have all the correct documents.
Cancelling your car insurance is an important part of this process you will need to remember if you want to avoid unnecessary charges or legal issues. But when is the best time to contact your insurer? This blog will break it down…
Why is car insurance important?
Car insurance is a legal requirement for anyone who drives a car in the UK. It helps to cover cost associated with damage to your car, property or injuries to others.
When you scrap your car, you are essentially taking it permanently off the road and therefore no longer need to pay insurance. However, cancelling your insurance too soon can cause issues, so don’t rush to cancel everything immediately.
When should I cancel my insurance?
Thinking it will save them money, some people try to cancel their insurance as soon as they decide to scrap their car, however this can lead to problems. Until your car is off the road and officially scrapped, you’re still responsible for it. So, if anything happens to your car before it is scrapped – for example it gets damaged or stolen – you will be left to deal with the repercussions without insurance.
You can even be fined and taken to court if you cancel your insurance before your car has been scrapped, so it is essential that you wait until you have official confirmation of the scrapping before you cancel your car insurance.
This confirmation will come in the form of a Certificate of Destruction (CoD). Your CoD officially ends your responsibility for the car, so once you have this certificate, you can safely cancel your car insurance.
Will I get a refund for my unused car insurance?
When you contact your insurance provider and let them know you’ve scrapped your vehicle, ask whether you are entitled to any refunds for your unused insurance. Depending on your insurance policy, you may be entitled to a refund for any unused months of coverage. However, this will depend on your provider and policy, so make sure you check your details before you get in touch.
You should also ask your provider about any potential cancellation fees, especially if you’re cancelling mid-term.
Can I transfer my insurance to my new car?
Although it can vary depending on your provider and policy, generally you can switch your insurance to a new vehicle without needing to cancel it altogether. This can save you time and money compared to setting up a new policy or paying cancellation fees.
What happens if I don’t cancel my insurance?
If you don’t cancel your insurance for your scrap car, you may end up having to pay for coverage for a car that you no longer own – not ideal! That is why it’s always best to cancel your insurance as soon as you have confirmation that your vehicle is scrapped.
If you have any questions about our scrapping process at A&L, please don’t hesitate to get in touch with us today and a member of our team will be happy to help!
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