What should I do with my car insurance when I scrap my car?
As soon as your car is recovered, and the V5C log book slip has been completed and returned to the DVLA, you will no longer be responsible for the vehicle – so you can cancel your insurance.
It’s a good idea to talk to your insurance company about cancelling – as they’ll be able to let you know if you’re entitled to any refunds, or whether you can transfer your cover to your next car.
What if you’re collecting my car from private property?
If your car is being stored on the road until collection, you’d be breaking the law if you cancelled the insurance before the car is taken away by our scrap partner. However, if you’re keeping your car on your own private property, you are under no obligation to keep your insurance running.
Remember though; if you do cancel your insurance completely, you may not be covered for incidents like theft or fire damage – so you should always seek advice from your insurance company before you cancel your policy.
What if my car is already SORN and off the road?
If you have made a Statutory Off-Road Notification for your vehicle and you’re just waiting for it to be collected, your insurance company may be able to reduce your cover to account for the fact that you’re not driving the car. Some insurance companies offer ‘laid up’ or ‘SORN’ cover, so it can be worth asking your provider – as it may save you some money until the car’s collected.
Do I need to keep the car insured while it’s being transported?
As soon as the person collecting your car begins recovery, the car becomes their responsibility – and that includes the journey your vehicle will make to the scrap yard. You don’t have to worry about the car when it leaves your possession – as our collection partner’s insurance will then take over.
Will I get an insurance refund if I scrap my car?
In some cases, you may be issued a refund for any insurance cover period that you’ve paid for – but no longer require. Whether you’re due a refund will generally depend on how you’ve paid for your policy; if you’ve paid upfront for the year, you may be entitled to some money back – but, if you pay monthly, you may find that your insurance company will just cancel future payments. If you’re not sure, contacting your insurance company directly will get you a definite answer based on your specific circumstances and policy.
