Is there a problem with me just letting car insurance lapse (1 month to go) rather than cancel?

[tamss]

We have recently gone from two cars to one and will be trading in the remaining car for a new (used) car at the weekend.

We have sorted the insurance for the new car (cheaper to take out new policy) so dont need the existing cars insurance.

I went on to the insurer's website to cancel and was given the message that it will be £35 to do so - as the insurance has only 5 more weeks to run I'm inclined just to let it lapse. Is there any problem with this? The car will be going to a dealer where presumably it will be resold/ passed on in the trade so unlikely to be back on the road immediately. Surely once we've signed over the V5 any liability we have ends?

Im sure i was told its illegal to have 1 vehicle insured twice so if the dealer sells it and its insured immediately there could be a problem.
It may also be in your t&cs to have to cancel when u sell.

Check Ts and Cs, you are not driving when uninsured.

Won't that prevent the new owner insuring it?

Will it definitely lapse and not auto renew?

I did this accidentally once when I got rid of my old car. I only realised when I got a letter saying it had been insured twice!

nothing happened though!

You can just lapse it but make sure your policy isn't auto renewal as most insurers do this.

Also my car technically has two policies on it right now (my own and DDs separate learner policy)

AFAIK you just can’t seek to double recover/claim on both.

Hi. I work in insurance.

As an intermediary, I would be obliged to cancel your insurance because you no longer have any insurance interest in that car. You also can't have dual insurance on a car meaning the same car can't be insured twice. However, unless the new owner goes to the same owner, chances are they won't ever find out (as there's only a month left until renewal).

You should've received your renewal from your insurer now? Give them either an email or call closer to the time and let them know you won't be renewing as you intend to sell the vehicle once the insurance is up (if you decide not to cancel).

If I was your friend, I would probably say leave it if it's going to put you out money & not get you money back (return premium). A month's a short time and not worth the hassle. Cancelling insurance is a bit of a pain too and a lot of insurers prolong it.

If they go to the same insurer*

If you cancel, you shouldn't have to pay the last DD payment or if you paid monthly, you may get a refund if over the £35. Has all that been taken into account? I'd just notify them you don't want to auto renew and be done with it.

I don’t know the legalities but check carefully.
My last car went to the car sales garage in part exchange, I knew it needed some work done for the upcoming MOT. Just over a week later I received a letter from a woman asking if I had another key for it , she’d already bought it. I don’t see how the work was done, MOT carried out and it was sold that quickly.

It's really a bad idea to leave the insurance to lapse after selling the car. If somebody drives the car without insurance, your insure is on the hook as the insurer of record for the car. You will be in breach of contract and they will probably recover as much of their losses as they can from you.
Make sure you cancel the policy.

If something happens with the car while the new owner is driving it, even if they insure it too, there's a chance that liability could come back to your insurance under the RTA.

Cancel it. It's not worth the risk.