If I cancel my insurance, do I lose my No Claims from the year?

We were due to buy a used car and sold our car in readiness to buy and, therefore, just transfer the insurance. However, we were unable to come to a deal so walked away. We've got 6 weeks left on the current insurance yet we no longer own the car. Do we legally have to cancel the policy or is it ok to keep the insurance running? It'll cost more to cancel than get back in premiums. Also, if I cancel, will I lose a year's no claims discount? Thanks.

Asked on 15 September 2020 by ladnek

Answered by Honest John
The issue you now have is you are insuring a vehicle you do not own that someone else is driving. If that vehicle was involved in an accident, your insurer would be liable under the Road Traffic Act and your insurance would be affected. What I would do is ask the insurer if they can freeze the policy for 6 weeks whilst you look for another vehicle. That way, the old vehicle is no longer insured and you have no cancellation fee. If you cancel before the policy ends, you lose the no claims accrued in that year. I suggest you contact your insurer and request your proof of no claims, including that year, so you don't lose it.
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