What happens to car insurance when you get your car scrapped?

Although scrapping your car is a relatively simple process, there are a number of things you need to consider before you scrap it. Car insurance can be complicated at the best of times, so make sure you understand the rules before you get your car scrapped.

Below, we’ll list some of the key things you need to know about car insurance when you are thinking about getting your car scrapped.

Do I have to cancel my car insurance before my car gets scrapped?

This answer depends on your personal circumstance. If you are thinking about getting your car scrapped, you should always make sure to call your insurance provider beforehand to discuss your options and obligations.

If your car is on a road and you can’t park it on private property, it is illegal not to have insurance on it. In this situation, it is always recommended that you keep your car insurance policy activated until the car has been taken to the scrap yard. After the car has been taken to the scrap yard, you can then contact your insurance provider and cancel the policy.

If your car is parked on private property like your driveway or in your garage, there is no legal obligation for you to have insurance. If you have recently taken your car off the road, you should let DVLA know, as this means you will no longer have to pay tax on the vehicle. However, it is important to note that your vehicle will not be protected from any accidental damage or theft during this time. If you want extra peace of mind, talk to your insurance provider about extending your car insurance until it gets scrapped.

What if I have a new car?

If you are scrapping your old car and already have a new one that will need insurance as soon as you scrap your old one, it is always best to get in touch with your insurance provider to see if they can end one policy and begin another on the day your car gets scrapped. You may also be able to find better car insurance if you have bought a newer car, so make sure you shop around before making a decision!

Get more information about scrapping your car today

If you are thinking about scrapping your car and are looking for a professional service, get in touch with our experts at Motorwise.


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