Jump to content

Insurance question


leigh
 Share

Recommended Posts

Hi, I am (very reluctantly) planning on selling my Ninety. My insurance only has few months left to run, so I was thinking about leaving it to finish so I get another year No Claims Bonus. Is this illegal or fraudulent in any way, as I won't own or drive the vehicle any more?

Leigh

Link to comment
Share on other sites

Hi, I am (very reluctantly) planning on selling my Ninety. My insurance only has few months left to run, so I was thinking about leaving it to finish so I get another year No Claims Bonus. Is this illegal or fraudulent in any way, as I won't own or drive the vehicle any more?

Leigh

Hi Leigh,

When I snapped my RRC chassis I rang my broker and explained that it was off road but I wanted to keep the policy going to get the NCB, wasn't an issue and they reduced the remaining direct debits, IIRC policy was with Direct Line.

Give your brooker a call and explain what you are wanting to do, they will tell you if they won't let you do it before you sell the truck.

HTH,

Mick.

Link to comment
Share on other sites

I agree with Mick, you could be in the situation where the vehicle is covered by two policies, yours and the new owner's, which could lead to complications in the event of a claim.

Could you not buy an old banger and transfer the insurance to that? You may even make a profit if you sell it for scrap after a few months!

Link to comment
Share on other sites

I think you will find that your policy states that you should inform your insurer if you dispose of the vehicle. If you fail to do so your insurer can technically (and I say technically as some form of loss must have been suffered) take action against you for breach of contract.

The Fraud Act 2006 s.3 makes it an offence to dishonestly fail to disclose information where there is a legal duty to disclose that information.

The Law Commission Report No 276 Cm 5560 (2002) suggests that a legal duty may arise from contractual obligations:

"7.29 For this purpose there is a legal duty to disclose information not only if the defendant's failure to disclose it gives the victim a cause of action for damages, but also if the law gives the victim a right to set aside any change in his or her legal position to which he or she may consent as a result of the non- disclosure. For example, a person in a fiduciary position has a duty to disclose material information when entering into a contract with his or her beneficiary, in the sense that a failure to make such disclosure will entitle the beneficiary to rescind the contract and to reclaim any property transferred under it."

If your policy does state that you need to disclose a disposal of the vehicle and you do not do so with a view to making a gain (ie. a further year's no claims bonus) then you run the risk of committing an indictable offence (ie. that which will be heard in the Crown Court) and that carries a punishment of up to 10 years imprisonment IIRC.

Hope this helps

JJB

Link to comment
Share on other sites

I agree with Mick, you could be in the situation where the vehicle is covered by two policies, yours and the new owner's, which could lead to complications in the event of a claim.

Could you not buy an old banger and transfer the insurance to that? You may even make a profit if you sell it for scrap after a few months!

I was told by the insurance that it is illeagal to have two policies on one vehicle as it is fraudulent.

Lets face it if I bought a vehicle and the old owner kept it insured I would walk away from it.

Marc.

Link to comment
Share on other sites

I did something similar. I had the 110 insured with Churchill, with 4 years NCB, and the 90 and 88 are with Adrian Flux (no NCB on the 88 as it's a classic, and with the 90 they quoted taking into account the 4 years on my other vehicle (the 110)).

When I took the 110 off the road, I cancelled the Churchill policy. Then I realised I'd been a fool and potentially thrown away half a year's NCB, so I phoned Adrian Flux and they said to just email a copy of the cancellation schedule from Churchill (which listed my NCB) and then they would transfer it onto my 90's policy. So now I have the 4 years NCB with that one, and it will become 5 when I renew it in June (touch wood!). Flux even gave me a discount because the NCB was now officially associated with the policy, rather than just having been 'taken into account' when quoting.

If it's only a month, I would hold off if you can. A year's extra NCB is worth having, especially if you're my sort of age!

Link to comment
Share on other sites

again, it all comes down to what you agree to do and you will find the answer in your insurance policy. It may be that upon disposal of the vehicle you just need to notify your insurer but the policy will continue until its expiry (particularly where you've paid upfront and not by direct debit). It may be that the policy must be terminated. Each policy will be different to the next so you have to read your policy to find out what obligations you have.

Link to comment
Share on other sites

Just an update - I spoke to the insurance company (CIS/Co-operative) and they were fine about me leaving the policy to run after selling the vehicle. The lady even advised me to do so as then I wouldn't have to pay the cancellation fee and would still have 3rd party extension.

So I can at least recommend them from a helpful customer service point of view!

Now I have no excuses not to sell the old girl... :(

Link to comment
Share on other sites

I was told by the insurance that it is illeagal to have two policies on one vehicle as it is fraudulent.

The issue maybe making two claims with different policies on the same vehicle.

Which is illegal.

Not having two insurances because one overlaps another.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...

Important Information

We use cookies to ensure you get the best experience. By using our website you agree to our Cookie Policy