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Just read that you, as the previous owner of a vehicle can be legally liable for insurance claims, if the new owner does not insure it in his name. Additionally the police may pursue you for permitting an unlicensed/uninsured driver to take the car away AFTER you have sold it, if you do not cancel your policy immediately after selling it. Insurers and police admit this is a loophole that may get you into big trouble....I have done this several times by allowing a second policy to run on until expiry to get a full years no claims bonus....luckily without comebacks.....
 

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Nope not just scaremongering on the insurance claim issue. If you have a vehicle insured

then a 3rd party can claim off your insurance and the new owners insurance, or just yours

if they dont have any.

You have joint liability on the insurance side. On some other forums i use these things do

pop up a couple of times a year.

Always wise to cancel the policy when you no longer own the car. Sometimes people do it

because the cancellation fee is more than the rest of the payments. But it is risky.

Police prosecuting you for letting an uninsured driver take the vehicle. Thats a joke surely.

How can you legally check the other driver was insured? A worthless piece of paper that

almost anyone can print off?

Will they also prosecute you because the new owner didnt tax it? When you sell a car now

the new owner must tax it because you cannot transfer it.

Neither of these two are your problem. And no way for you to check accurately.
 

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the prosecution bit is a little off yes, its highly unlikely unless you let the sucker run for a stupid amount of time like 11 months or so - 1 maybe 2 months & I doubt they CPS would be bothered but then again this is the UK so stupid laws & all that :(

BUT the allowing your old policy to run on till expiry instead of cancelling bit is VERY true.

OK if the other party IS insured then that policy will take a hammering should they stuff it & yours will only ever be called upon IF the other policy declines the claim etc - false details given that voided the policy etc BUT if the new owner never insures then your old policy will take the battering for the 3rd party side of any claim made ( it wont pay out for the car that the new owner crashes but WILL HAVE TO by law pay out for any 3rd party damage caused when the vehicle gets stuffed etc.

plenty of folks have fallen fould of this when selling on there 2nd car or weekend toy etc & leaving the policy active as there was little time left & the cancellation fee would cost more than the refund etc.

one thing to do if you must leave it running is se if a relative has a car laid up that you can transfer the policy onto as a fire & theft risk only policy till it expires & then your not legally liable for your old mota & it may only be a quick £20 or so mid term change fee instead :L
 

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You will obviously believe owt!!

You have not and never have had any duty to check the buyer of your vehicle is insured.After all it isnt your business.

Forum bollox............
I presume you didnt read my post. I actually agreed about the insurance. Its not my legal problem

if a buyer is insured or not.

As i mentioned there is no legal way of checking to see if they are insured.

Not cancelling your policy on a car you have sold is a risk.
 

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the prosecution bit is a little off yes, its highly unlikely unless you let the sucker run for a stupid amount of time like 11 months or so - 1 maybe 2 months & I doubt they CPS would be bothered but then again this is the UK so stupid laws & all that :(

BUT the allowing your old policy to run on till expiry instead of cancelling bit is VERY true.

OK if the other party IS insured then that policy will take a hammering should they stuff it & yours will only ever be called upon IF the other policy declines the claim etc - false details given that voided the policy etc BUT if the new owner never insures then your old policy will take the battering for the 3rd party side of any claim made ( it wont pay out for the car that the new owner crashes but WILL HAVE TO by law pay out for any 3rd party damage caused when the vehicle gets stuffed etc.

plenty of folks have fallen fould of this when selling on there 2nd car or weekend toy etc & leaving the policy active as there was little time left & the cancellation fee would cost more than the refund etc.

one thing to do if you must leave it running is se if a relative has a car laid up that you can transfer the policy onto as a fire & theft risk only policy till it expires & then your not legally liable for your old mota & it may only be a quick £20 or so mid term change fee instead :L
Please enlighten us to where you got the info from to substantiate the quote in bold? I have my pop corn at the ready!!
try searching the likes of pistonheads legal section.

that's where I read at least 2 requests for help from folks in similar situation in the last few years ( sold vehicle, kept policy active as only 1 or 2 weeks/a month left to run & ins company wanted stupid money to cancel the policy & buyer stuffed it on the drive home or in the weeks later & was not insured.

this left only the sellers still active policy to foot the bill for the damage caused

this seller policy then paid out on the 3rd party part that they HAVE to do by law & if memory serves 1 of these then had that ins company going after the seller / policy holder for the outlay that they suffered as the policy should have been cancelled - no idea how that went but feel free to have a browse round yourself.

but I have to admit your attitude on this matter is a little harsh - I did agree with you on the courtroom thing, its highly unlikely the police etc would take you to task on it unless the buyer took out a bus full of schoolkids & the entire contents of mumsnet got involved so the CPS decided to chance it to shut them up but the ins policy paying out thing is true as they have to payout if they are still listed as the only insurance policy covering the vehicle even if the policy holder no longer owns the vehicle - they don't provide FULL policy cover , they only provide the uk statute law requiring 3rd party cover for the other peeps involved - again this is from reading the threads on pistonheads & on there they posted links to the sections of the law involved etc so fill ur boots & have a butchers at them for the ins side of things :L
 

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OK, fair enough, it was on a forum after all.

BUT the fact still stands, your insurance policy IS still on the hook for a possible pounding IF you decide to leave the policy active on a vehicle you sell & the new owner does not insure & stuffs the vehicle

from what I can see from a few mins of googling there is very little wriggle room for your insurers to get out of paying for 3rd party claims like this as its a UK legal requirement that's set in stone near enough on ANY motor ins policy ( there is some get outs but from what I can see its a lot of effort & often easier/cheaper just to pay out & move on :whistling: )

( same for my above comment about the insurer coming after the policy holder for the losses in events like this that they have had to pay out for, seen reference that that again on a search but this time a few more replies & one from a supposed long term insurance industry chappy stating YES they can if they wanted to BUT the rules & regs they have to follow in order to do this makes it not a very good option for them so its very rare that insurers do this etc, they just pay out & move on instead usually - you have still lost your/a chuck of your NCB & have to declare for the next 5 years with suitable rise in premiums etc so you aint got away scott free in the end )

so I still say, best to notify insurer of the sale & suspend/transfer/cancel the policy as soon as possible after sale as it might cause you some stress in future should the worst happen but if you choose to risk it, then its your choice :L
 

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Big Megger
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I would say that anyone continuing to pay insurance on a vehicle they have not got is - well - silly!! I do agree with the comment on "attention to detail" and cannot see any mileage in keeping a policy alive to get the no claims discount, surely if one transfers the policy to the new car the discount is also transferred (open to comments on that). In the 45 years of motoring I have always had insurance on just the car I was driving not on the one I sold AND the current car.
 

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Mike, The issue is that if your policy is near the end of its term then the cancellation charges

may mean that you pay more for the shorter policy than a full one.

Charges upto £75 are not unknown.
 

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Big Megger
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May be missing something here but

1 I transfer my current policy to the new car, same terms and conditions - no loss of NCD no cancellation fee as its a transfer. If i decide not to re-insure with my current company,when renewal date comes, I still get the NCD entitlement credited to my next policy. Doing it that way make use of new customer discounts.

2 Yes small increase in cost as new car is newer and costs more - but isn't that to be expected?

3 All transactions done prior to collecting new car even if it's a PX or private sale = continuity of cover if driving new car from point of sale.

What am I doing wrong??????

PS. I don't wish to prolong this thread so just simple answers please - thanks :stir:
 

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You have to think of those situations where your current insurer wont insure the car

you want to buy.

Or your £300 a year premium is only a 3 weeks away and they want an extra £200 to

swap the cover to your new car.

Or as above you wont be insuring another car right away.

Its the fact that the charges they add on end up with you paying more than the original

premium.

People dont want to pay that and end up in all sorts of grief if they dont pay.
 

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MEG Corporal
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Well, this all escalated quickly :gayfight:

The part around being prosecuted, as previously mentioned, is complete and utter tosh. For the CPS for put forward a strong enough case for prosecution would only be possible if there was some deliberate, elaborate scam going on. For us general Joe Bloggs, selling a car and forgetting to cancel it, would be incredibly rare to result in a prosecution.

With regards to being pursued for claim costs, this is more likely. The issue now is around how an insurer becomes liable for a claim. Historically, an individual would have to produce an insurance certificate for an insurer to become liable. So unless you handed over your certificate when selling the vehicle, your insurer would not become involved unless the new buyer didn't buy insurance. Then the Motor Insurance Bureau would fight it out with your insurer (as the insurer appearing on the Motor Insurance Database) as to who is liable.

With the latest changes, the certificate almost becomes irrelevant and the insurer on risk will largely be determined by the insurer in the Motor Insurance Database. So you sell your car, don't cancel the policy and the new buyer doesn't take out their own insurance. They crash the car and your insurer is still appearing on MID, therefore your insurer is liable. They will get the claim and note the driver is not covered under your policy and that you do not own the vehicle. Unless they can reduce their status to Article 75 or RTA insurer, they will be liable for the claim. As they should not have been, they are well within their rights to pursue you for the costs they have paid out.

Clearly different insurers will take different views as to when they will pursue costs, some all the time, others never. Some only when the claim exceeds a certain amount, others will dig into your financial situation to see if a claim is worth pursuing.

Needless to say, they do have the option so it's always worthwhile cancelling, even if the cancellation amount exceeds the rest of the policy amount. Knowing our luck as Mondeo owners (not much luck), we'll take that risk and get stung.
 

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Blimey. I'm surprised that there are folk who don't cancel policies/ transfer them. Ok, if it's a 2nd car going and not to be replaced and ' just ' a week or 3 left then and cancellation charges. Simply chat with the insurer and they'd probably scrapped the charge coz of possible fraud and your probably with them for your 1st car.
As for transferring to a new car. In my experience I have Not lost any NCB. The new car policy runs out at the same time as the old car. Simplez as Orlov says.
 
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