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Will My Insurance Go Down If I Remove a Car?


Posted on 28th, Apr 22

When your car can’t keep up, maybe because it is old, got junk, or is not in use or met with an accident, the time comes to scrap your car. So it’s a very straightforward process; all you need is a little knowledge ahead of time to make sure everything goes correctly.

The car insurance implications are among the most anxiety-inducing aspects for many vehicle owners. When and who is responsible for the car? When does responsibility for the scrap firm move from you to the scrap company? Is there any document work to get it completed? And when is it going to happen?

Get answers to questions like this below. You can scroll down to discover answers to specific topics, but if you’re new to scrapbooking, you might want to relax and read it all.

Car Insurance

Is it necessary for me to cancel my car insurance before scrapping the car?

The answer to this question is complicated. Before moving ahead and arranging for your automobile to be collected and scrapped, it is the best decision to call your car insurance carrier. Still, there are two primary possibilities to consider.

  • If the vehicle is parked or kept on the street

It is illegal not to have proper car insurance coverage if you retain your automobile on the road, even if it is undrivable and has been motionless for some time. In this case, the car is your responsibility until the scrap company arrives to collect it, but the liability is transferred to them as they drive away.

The best course of action is to hold off on cancelling the car insurance until the junk business arrives and removes the old or unused automobile.

  • If the vehicle is standing within your area

There is no legal requirement for you to obtain car insurance if you keep the car on your property, whether it is drivable. Regardless of where the vehicle is on your property: it could be parked in full view on the driveway or tucked away in the garage; it doesn’t matter.

However, keep in mind that driving without car insurance means your vehicle will not cover in the event of damage (accidental or criminal) or theft.

As a result, you should call your car insurance provider before cancelling the policy — the peace of mind in return may be worth it, plus you may have accumulated a no-claims bonus that’s worth remembering and keeping in mind when it’s time to renew.

  • I already have a replacement vehicle for the scrapped car.

Most individuals prefer to avoid insuring their two vehicles at once, but they do it to save money and headaches and paperwork.

If you plan it correctly and get your new car on the same day you junk your old one, before everything, you must notify your car insurance on the same day and provide them with the specifics of your new car so they can change your policy.

Fast Way Car Removal will help you scrap your car legally and quickly. We provide service in Gold Coast, Sunshine Coast, Toowoomba, Ipswich, Brisbane, and Northern Rivers. Get a quick online quote from us to see what the most competitive price is for your vehicle, and if you’re happy with it, we’ll pay you right away and come pick it up. Call us now: 1300 324 912