Insurance question

[Fiddlesticks]

Random question - what happens if you sell a bike but don't cancel your policy?

It's all paid up, likelihood is that I'll get nothing back. Want to keep the no claims going, probably buy a replacement before long....

[husoi]

If you sell your bike and don't cancel the insurance you won't get any possible refund.

NCD will stay valid for around 2 years without a new insurance.

If something happens to the bike, you won't receive anything as the information they have is false.

It could affect your next insurance as you have provided the previous insurance company false information and you will be considered a fraudster.

You premium will likely go up substantially and you are likely to lose the NCD.

[RideWithStyles]

To add: your still liable to that bike while you have insurance attached to it as you can’t have two insurances to one bike.

if the new owner has an accident your insurance have to pay out put they will probably chase you for the total cost as you didnt own it and had no interest in the bike anymore.

also with the view if you sell it (your not the owner) they can black mark you for falsely insuring it. So potentially really messing your reputation with insurances.

you have two years to the anniversary of the ncb which the policy full year (term) ended. 
 

Im sure you have enough years in the bank so just stop it and start again when needed.

Edited March 9 by RideWithStyles

[bonio]

This is true. Your insurance on that bike is still valid insurance until its cancelled or its terms finishes, and it's there in the insurance database. If the bike's in an accident, anyone involved could claim on your insurance, and you could end up having to declare the claim for the next 5 years. It's unlikely, but it has happened. To me, it's worth the £25 "admin fee" to have to pay to have it cancelled.

[Yorky]

 

"£25 admin fee"

 

  I wish!!!. 

 

I've had to cancel two policies so far this year. First one cost me £60.00, second one cost me £45.00.

 

I HATE insurance companies.

[husoi]

I never had to pay admin fee when cancelling because I have sold the vehicle.

 

[Capt Sisko]

13 hours ago, bonio said:

This is true. Your insurance on that bike is still valid insurance until its cancelled or its terms finishes, and it's there in the insurance database. If the bike's in an accident, anyone involved could claim on your insurance, . . . . .

AND your insurance company could come after you, personally, to recoup the cost of the claim and their expenses. If that 3rd party's vehicle was just a dent on a rust old Corsa you might say so what, but what if it wrote off a virtually new Rolls, Bugatti Veyron, worse still there was someone injured, subsiquently confined to a wheelchair for the rest of their life or worse. You could be paying out for the rest of your life.

 

That sounds dramatic and the odds of it happening are slim, but it does happen and it's part of the reason why you took out insurance in the first place. Tell the insurance company, ask about their policy on NCB and take whatever cancellation fee there is on the chin.

Edited March 10 by Capt Sisko

[Steve_M]

On 09/03/2025 at 23:42, bonio said:

This is true. Your insurance on that bike is still valid insurance until its cancelled or its terms finishes, and it's there in the insurance database. If the bike's in an accident, anyone involved could claim on your insurance, and you could end up having to declare the claim for the next 5 years. It's unlikely, but it has happened. To me, it's worth the £25 "admin fee" to have to pay to have it cancelled.

It does happen. I sold a little Suzuki 125GN and didn’t cancel the policy immediately. The new owner crashed it while it was still insured in my name. Fortunately I’d cancelled the policy by the time the claim was processed so my insurer took the view that it was an obvious oversight on my behalf and there was nothing fraudulent intended.