What happens to my insurance premium if I stop owning a car for a period of time?

Question

Does it affect my no claims bonus if I already have 6+ years no claims?

Answer 1

Not owning a car is different to not DRIVING a car for a period of time. If you do not own and therefore insure a car for 12 months+, the ins comp may ask why...it does however help alot if you have been driving periodically on someone else's policy, even if its just very occasional.
Your NCD is valid for 2 yrs. If you have not insured a car in your name using your ncd within that time, I'm afraid it will be lost.
This is why some couples insure a family car in husbands name one yr, then wifes the next...it allows them to retain their ncb.

Feel free to contact me via my profile if you need more advice.

Answer 2

An EXCELLENT question!

So many people do not hesitate to cancel their policy -either sold car or similar circumstance.

Do NOT cancel your policy. Call your agent an let them know that you are not driving a car at the present time but want to maintain your insurance. If not, you will be starting all over as a new driver!!!! You may be able to pay a special lowered rate until you get another car and resume regular insurance coverage.

I moved out of the country for a year but kept my insurance and paid for the year. I could never have afforded to pay the higher rates if I did not do this.

Answer 3

Technically the longer u stay with a company in each renewal they offer u a better quote or rate. If u stop owning a car for a while whenever u get ur insurance again make sure u get a letter of experience from ur old company and that way ur new insurance carrier will give u a good driver discount.

Answer 4

This happened to me and a company that I had been with for several years. I didn't have a vehicle for a couple of months and when I went to get a policy on the new vehicle, my premiums jumped way up, they told me that it was because I did not have insurance for more then 30 days, and when I told them I did not have a vehicle to insure during that period, they basically told me that's tough and that's the law, but after having a new policy for 1 year they would look at it and may be able to lower it then.

Answer 5

No, it dies not affect your claims history in any kind of way. You will need to let your insurance company know that you no longer own the car that you had insured with them, and they will cancel the car insurance and give you a pro-rata refund of any paid premiums. Do not cancel your car insurance until you have actually sold the car to someone.

Answer 6

Well if you don't own a car, you shouldn't be paying insurance - there's no car to cover. It shouldn't have any affect on your premiums. If it does, you might was to consider another insurance provider. It would only matter if you went 6 months WITH a car with no coverage.

Answer 7

In my experience, I went without owning/insuring a car for about three years and they "assume" everyone needs a car and can't go without one therefore should always have a car insured. I was penilized for not having a car to insure by having to be on "risk" insurance for 6 months because they assume no one can possibly not have a car.

Bottom line is they accuse people like you or me of having a car and not insuring it for a long while so they spank you for being a bad boy. Jerks. They should not be able to do that.

Answer 8

I might suggest you to try this web site where you can compare quotes from the best companies: http://COVERAGE-FINDER.NET/index.html?src=2YAlacmzPX51

RE :What happens to my insurance premium if I stop owning a car for a period of time?
Does it affect my no claims bonus if I already have 6+ years no claims?
Follow 46 answers

Answer 9

I recommend you to try this site where onel can get quotes from different companies: http://INSUREQUOTE.INFO/index.html?src=3YAspa73dPtyu

RE :What happens to my insurance premium if I stop owning a car for a period of time?
Does it affect my no claims bonus if I already have 6+ years no claims?
Follow 47 answers

Answer 10

If you drop your insurance for more then 3 months you have to pay a penalty when you sign back up with insurance. This happened to my son. He sold his car and didnt buy another for almost 6 months and had to pay double the first premium, even though he had a clean record.