Having recently retired and being a city dweller, it makes sense for me to trade in my large saloon car. I now have the chance to sell it to a friend, and am contemplating trying to live without a car for a spell, to see how this suits.

I am however concerned that if I decide to buy a smaller car after an interval, I will have lost entitlement to no claims bonus and will be heavily penalised when I insure again. Any thoughts or advice?