Cancelling Insurance After Selling Your Vehicle Warning!

[FUBAR]

I think I have seen this story or similar ones a few times in the past, but worth repeating it for those who may not have seen / hear / be aware of it. 

 

http://britishbikersassociation.org/blog/entry/scots-biker-in-insurance-hell-after-legal-loophole-forces-him-to-pay-thousands-for-death-crash-on-his-old-bike

[ILOVEMYSUPERB]

That's unbelievable, makes me furious just reading about it.

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[mannyo]

But the fact remains, owner or not that an active insurance policy must pay 3rd party liabilities even if the driver/rider is not listed on the policy.

 

The lesson to be learnt here as stated, is to always cancel your insurance straight away when you sell a used car/bike that has an active policy on it. You can even do that at weekends given most companies now operate 24/7 call centres.

[KenONeill]

This could sound kind of selfish, but where would that place someone like myself who has a "named drivers only" policy?

[Dr Zoidberg]

But the fact remains, owner or not that an active insurance policy must pay 3rd party liabilities even if the driver/rider is not listed on the policy.

 

The lesson to be learnt here as stated, is to always cancel your insurance straight away when you sell a used car/bike that has an active policy on it. You can even do that at weekends given most companies now operate 24/7 call centres.

 

Would they also pay out for third party liability if the vehicle was being driven by someone who has stolen it?

[Ootohere]

2nd line, 4th word.  "Could".  Not 'Will be'. 

 

It will be heard in a Scottish Court if it goes to Court.

& as many know, the Insurance Underwriters have the Insurance cover as 'English Law',  and when it gets taken to a Scottish Court,

then they find that 'Common Sense' enters the 'Equation', because there Terms & Conditions can be ridiculous.

 

Got the T Shirt, lost my leg on a Motorbike not more than 20 miles from this location, 

& an Insurance Company really thought they could act like this ones seems to think they can.

Edited 2 September, 2014 by goneoffSKi

[Phil-E]

Yes it is annoying... but it would have taken him 5 minutes on the phone to cancel the policy. When I have sold, traded or got rid of cars in the past I've rung on the spot and sorted the insurance out.

 

Would they also pay out for third party liability if the vehicle was being driven by someone who has stolen it?

 

I believe so yes.

 

Phil

[topcat2006]

The best thing after a recent experience is some are charging fees to cancel the policy!

[@Lee]

The best thing after a recent experience is some are charging fees to cancel the policy!

I'd rather pay a fee on cancelling than run the risk of being stung to the tune of  000's for not cancelling.

[topcat2006]

I'd rather pay a fee on cancelling than run the risk of being stung to the tune of 000's for not cancelling.

That's not what I'm saying, £40 is cheap in comparison to 000's but find it cheeky that they charge a fee to cancel it.

[kilted]

Scary to think about getting caught like this.

 

Make sure you cancel the moment they drive off (with a private sale anyway)

[Ootohere]

Make sure you are no longer the Registered Keeper & Owner,

because the Insurance Underwriter are quick enough to Invalidate your Insurance cover other 

than the 3rd party bit whan you do not make them aware of Changes, Modifications, Place of Residence etc.

 

So from October as you sell a Car, Bike, Van whatever,  the VED is no Longer Valid. 

So the DVLA need a good Online or on Phone system to declare yourself no Longer the Registered Keeper / Owner.

 

Other wise the current system of the New Owner sending off the V5, if you go with letting that happen.

The New DVLA System of Registered Keepers, Valid MOT, Valid Minimum 3rd Party Insurance will need to be a bit quicker than the current 

Data Base hook up with the MID.

Edited 2 September, 2014 by goneoffSKi

[FUBAR]

Would they also pay out for third party liability if the vehicle was being driven by someone who has stolen it?

 

It does appear so indeed! There are several cases in Northern Ireland where cars have been stolen from peoples houses and the Police have subsequently spotted and given chase, then rammed the cars off the road.......... then the individual Police officers have sued the car owners in civil cases for personal injury compensation because of course they won't get much money off a car thief........... I have posted a few times with links to such cases on BBC News NI etc, makes my blood BOIL! 

 

http://www.bbc.co.uk/news/uk-northern-ireland-21168310

 

http://www.belfasttelegraph.co.uk/news/local-national/northern-ireland/psni-officers-claim-15000-compensation-from-belfast-car-theft-victim-29756163.html

[Gaz]

Utterly bewildering and somewhat nonsensical to my simplistic perspective  :no:

 

Gaz

[Ootohere]

An Insured car that is Stolen, is insured, and the first part of Vehicle Insurance is 3rd party cover for it to be on the Highway.

 

So the Insurance Underwriter has insured a vehicle owned or Registered to the Registered Keeper, who might be the Owner.

 

Someone that has sold a Vehicle and no Longer is the Owner or Registered Keeper, really does not have Valid Insurance Running

after they no longer own,

but they should inform the Insurance, ie Cancel the Policy and not allow it just to run out.

 

That is to stop a Vehicle with MOT, VED & Insurance being show if a ANPR check happens.

So really, thats the point of the OP & the Link.

 

As to the Insurers, and a paid up Policy being Cancelled, that should not incur anything more than a couple of Quids Admin Charge if any.

Edited 2 September, 2014 by goneoffSKi

[Neily03]

Whenever I've taken out car insurance one of the questions i've always been asked is "are the you the registered keeper" so surely once the car is sold and the relevant sections of the V5 completed and signed then you are no longer the registered keep and the insurance can't be valid can it?

[ILOVEMYSUPERB]

Insure the driver not the car seems to be a sensible change. The driver is insured and provides details of the car he/she uses.

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[giandougl]

Wonder what the situation would be if he HAD cancelled his bike insurance the moment the bike left his premises ??

[mender]

Insure the driver not the car seems to be a sensible change. The driver is insured and provides details of the car he/she uses.

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In Poland you insure the car and anyone can drive it, this is one of the reasons so many Poles get into trouble in UK when they drive others' cars-they naturally think it is insured for everyone.

 

It does seem daft that you can't insure a person and allow them to drive a category of vehicles, eg up to group XX only (whilst making it easier to find out the group of each car), that way if you drive a C1, you can drive a 107 or basic Polo, but not  a Porsche-there's not much risk difference for the insurers.

[TroyChallenger]

I think I have seen this story or similar ones a few times in the past, but worth repeating it for those who may not have seen / hear / be aware of it. 

 

http://britishbikersassociation.org/blog/entry/scots-biker-in-insurance-hell-after-legal-loophole-forces-him-to-pay-thousands-for-death-crash-on-his-old-bike

"MCE Insurance, from Merseyside, refused to comment".  Of course not.

 

It's a non-story, nothing will happen.  His policy is valid on the basis of the information he provided when taking out insurance; it's now not valid because there have been "material changes" to that information which the insurance company are not aware of.

 

I'd be referring them to the FCA and the ABI (if they're a member, that is).

[BJM]

A non-story, and so stuffed with errors and incorrect assumptions it is laughable.

 

MCE Insurance are Brokers, NOT Underwriters.

Who is making the claim against Paul Duffy?

What is the position ref. the MIB in this case?

WHO has told him "this is the law"? It isn't.

 

The writer of the "blog" and Paul Duffy don't even seem to to know who their Insurers are - simple tip. It's at the top of your Certificate of Motor Insurance in big letters.

 

Based on this, I wouldn't trust either of them to sit the right way round on a lavatory seat, let alone understand the full details of this, only half reported, story.

 

(Mr Duffy should apply to the X-Factor, and apply for an audition - perhaps as a comedian. "Recovering from leukaemia and caring for his disabled wife" as a back story should guarantee him a place in the finals)