I am trying to sell my current car (immaculate 2000 VW Polo Match1.4, only 14,000 miles.....you know the score!)and am having difficulty over insurance matters.
I am due to take delivery of a new car on 1st September. At the moment the old car is insured and transfer of insurance will take place on 1st to my new car. I have been quoted £47 for 14 days for my old car (as an additional car on the new car policy) or £90 for month. This seems extortionate when you consider the old car policy is £356 for the year!
Do I have to bite the bulle and face this expense, should I take out another policy and 'cash' this in when the ca is sold or is there another way?
Many thanks for any help.
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Hi Becky,
Not an easy one, Mark (RLBS) is something of an expert in these matters, I'm sure he'll have more knowledgable advice but from my recent experience :
If the insurance company can get money out of you, they will and you'll probably have to pay whatever they ask.
Cancelling a policy early will lose you that years No Claims Discount, and probably incur penalties too - the money they return is unlikely to be pro-rata, so if you have the new policy for only a month, you might get say 70% of the premium back. My insurer generously offered a 5% return for four months remaining (avoid Hastings Direct say I)
I can sympathise entirely with your feeling of being a victim extortion, they really do seem to have you over a barrel sometimes. Just a thought, could you not get some more leeway if you threatened to find a new insurer or rang around some brokers asking if they could help you? May be worth their while just to get your business.
Anyhow, until someone else comes along, HTH,
Lee.
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Becky
what colour, how many doors, price and location area of car, pse?
thanks
Andrew (Surrey)
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VW Polo 1.4 Match, 3dr, 2000(W)
Mercato Blue Metallic.
Mul-T-Lok, c/l, ABS, PAS, e/s/r. 11 months warranty remaining. Full VWSH. £6900
North East.
(picture on autotrader website)
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It certainly is a lot of money.
Firstly, what are the driving restrictions on your policy ? If it is you only to drive, then normally the additional is reduced since only one car can be on the road at a time. If however there is more than just you, it essentially doubles their risk since both cars can be out at once.
However, anything more than a day or two is never going to be cheap whatever the circumstances. Firstly there is the question of pro-rata or short-term rates, which are horrible. Secondly, if the car is there for any length of time, and is treated as an additional vehicle, then the question of NCD comes in. You have probably earned bonus on one car, and therefore you cannot use it on two. Therefore, one of your cars is rated at worst without discount, and at best with a small intro. This is again exacerbated by having more than one driver.
It is most unlikely that taking out a policy and cancelling when the car is sold would be a good idea. It will cost you a lot of money since short-term rates will be involved. It is not likely to be any cheaper than insuring it as an additional car at £390 per month.
The real question is why you need the car insured the whole time.
If it is being used by someone, then bite on the price. It is an additional car and will be rated as such.
If you need it insured for test-drives when you are trying to sell it, then it is slightly different. If you explain to them that you still own the car, and will want occcasional insurance to try and sell it, then that should be ok. Of course, that wil effectively prevent the car being used since you will only be arranging the insurance when someone is coming to test the car.
However, you will need to be insuring it for any-driver, assuming test drives is your purpose, and that may increase the premium even more.
If the broker gives you grief then speak directly to the insurer, unless its Lloyds in which case you can't. Also, reduce the cover on it. Unless you are really worried about it being stolen, TPO should be enough.
Don't forget also, before you try to sell the car for as much money as possible, if it takes you three months to sell it, then it will have cost you £270. If you had reduced the price by £270, then you might have sold it more quickly. I am sure you get the point.
Also, you could try not insuring it at all. And if someone wants to buy it tell them it is not insured and if they wish to test-drive it either they should arrange their own insurance or pay you the additional premium to arrange it for them.
To summarise;
1) If the car will be used - tough, it is going to cost that sort of money.
2) If the car will not be routinely used, then find another way.
Does that help ?
Mark.
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If you're thinking of leaving it uninsured, just be aware that in some policies you are covered third party for other vehicles only if the car is already insured by the owner. Thus, anyone turning up for a test drive saying that they are insured on their policy might not be. Worth a check.
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again, a good point.
If it will help, describe here exactly what you want to do with the car and we'll see if the advice can be more pointed.
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Becky
I'm astounded. My company asks if the old car is being traded in and, if not, will continue insurance on it free of charge for 14 days.
They're also one of the cheapest I've found - but that may be because of the CSMA tie-in.
Anyway, if you decide to change after this bad experience, try Frizzell/Liverpool Victoria.
Terry
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I had a similar experience to Terry, though about twenty-five years ago. My insurance company said that whenever I needed cover for a test drive all I had to do was phone them the day before and they would send a cover note free of charge.
I was so pleased with this that I stayed with them for several years rather than hunt around for lower quotes.
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Thanks so much for your helpful replies.
Perhaps I should be a bit more specific about my plans.
I will NOT be driving this car, only trying to sell it. I thought selling it would be reasonably easy but that seems not to be the point.
My NCD is being transferred to my new car (excuse me now, while I quietly get excited, my Mini Cooper arrives in 12 days time, yippee!!)
I am the only insured driver for these cars.
I have been shopping around for insurances and as the insurance on my VW ran out 2 days ago went with the best quote for the Mini which was HSBC (using The Insurance Centre as broker).
Do you think I should call the broker again or try to speak to HSBC direct?
I really am very gratful for all your advice.
Glad I found this knowledgeable forum.
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Call the Broker again.
Point out that it is *not* an additional car, it is an overlap as one is sold. Also point out that you are the only driver.
If you don't get very far, ask them for what period they normally overlap cars ?
In short - argue and challenge.
I suspect that you are dealing with someone junior, that or someone who is low on their admin charges target this month.
Who is the insurer ? I am surprised that it would be the HSBC. Who's name is at the top of the insurance certificate ?
Mark.
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The details have just dropped through the door.
Broker is "Quotelinediret"
The policy is underwritten by HSBC Insurance (Ireland.
I've also just received a cover note for the same vehicle from my old insuranc brokers (Dial Direct).
Going to make some phone calls think.
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hold on a sec, have you changed insurers because of your change of car ?
If so, did the old policy expire ?
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Mark,
I'll answer your questions first and then tell you about my very enlightening phone call to the brokers.
I changed insurers because the quote from quotlinedirect was more competitive and they were more helpful, called me the day my old insurance expired etc.
The old policy has now expired.
There is no overlap period with my new insurer, except cover for me driving my old car to the garage to get the new one (just how do thy propose I drive two cars back from the garage single-handedly??)
They will however insure me fully comprehensive for the day at a cost of £15.75 plus their administration fee of £16.99 (whatwas it you were saying about low monthly admin charges)!!
BUT, because thay asked me why I knew so much and seemed so assured of my information I would be charged £15.75 for a week fully comp with an admin fee of £5.
May lock my expensive metal "stone around my neck" very securely and wait until my father gets back from his holidays, drive the car to him (leisurely, as I have a week after all!)and let him do the "Arthur Daley" bit!!
Looks like I'm scuppered!
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Becky,
A week of £15.75 plus an admin fee of £5 is about as good as you will get.
It is also a precedent in that I would suggest you could probably do it again if you needed to. They would struggle to reject a request for a further week of cover.
If it was me, I would accept that week's cover and then wait for your Father.
When your Father gets back, then he will probably be able to add limited cover for a limited time for the old car to his own insurance for a small fee. - working on the basis that he is older, and has had a longer and stable insurance record, and more likely to be with a composite rather than a Lloyd's syndicate. Perhaps he could check that out in advance ?
It should also be a pointer as to why one shouldn't blindly accept what you are told. You are typically dealing with people whose expertise is answering calls and admin, not the insurance experts. Pushing back, arguing and asking difficult questions normally results in the subject, and sometimes you, being referred to someone with more of an insurance clue.
And also - look at that admin fee on the original quote!! And that is normal.
Still, glad we were of some limited help.
Mark.
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problem with swapping cars within the family is that lots of policies require "that you are the registered keeper"
that is there have been times when it would have been best to swap cars with my father for a few months, then swap back, etc... and the most economic insurance would be for us both to just insure the car we are actually driving that month
problem is at the end of a few years registered keeper on the log book would have changed several times, and this affects value
biggest problem with having Father insure it until sold, is that most insurance companies will want the registered keeper changing
etc etc etc etc
so you need to do a little more homework
yea you can ignore this insurance technicality, but then if the car gets stolen you will have potential probs
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I have been quoted £47 for 14 days for my old car (as an additional car on the new car policy) or £90 for month. This seems extortionate when you consider the old car policy is £356 for the year!
Eagle Star gave me cover for a month free but would have charged £60 for subsequent months had I not sold the car. Direct Line charge about £20 per week i.e similar to your quote. It is extortionate but I don't think you have any choice but to pay up. I wouldn't want to leave a car of that value uninsured unless, perhaps, it was in a locked garage. However, it is worth asking the insurers what the cancellation charge would be if you take out insurance on a 2nd car and then cancel. You won't usually be able to use your NCB twice but some insurers do give a proportionate refund e.g. Direct Line & Morethan so that route might be cheaper.
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Bear in mind that if the car is sitting on your drive, whether you are driving it or not, although it may not be a legal requirement to have insurance (is it?), should anything happen to it (roof tile fall off onto car, house catch fire and car is immolated) then you have no cover...
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Direct Line charge about £20 per week i.e similar to your quote It is extortionate but I don't think you have any choice but to pay up
Direct line gave me 21 days free at a vehicle swap, no admin fee, cover note and everything recieved in a couple of days.
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