[thomasjenkins1]

Hiya,

I had my car MOT fail, this was structural (rust) and it'll cost me more than the cars value, thus, I will not be getting it fixed.

However, I am left in a bit of a pickle, I have 6 months remaining on my insurance, and tax I pay monthly.

How do I proceed about cancelling my insurance based on the MOT failure, and as the car is sitting on my drive undrivable, should I get this scrapped/collected by one of those car buyers online?

What's the best way to approach this issue?

The car is 20 years old and I think I have had enough of putting money into it, I have not dealt with this issue before, hence any information and steps to follow would be extremely helpful for me here.

So far based on google results, I got this:

1) Do I SORN the car?
2) Then have the car collected by a scrappage scheme, they tow it away and pay you a small amount.
3) get the V5C filled by the collector, keep the yellow part.
4) contact DVLA online, and state the car has been sold/collected for it to be scrapped.
5) call insurance and cancel the policy? (will I need to pay the remaining 6 months, or will I be charged a admin fee?) Insurance is with 1st central.
6) Do I require a Certificate of Destruction? or is this sent to the person/company collecting the vehicle?

Sorry, I really do not know, all of this sounds very confusing.

Thank you

Kay.

[onestitchloose]

I think the steps seem logical. I would add though for number 5, it really depends on your policy. Even 2 policies from same insurer could be different so just find the letter or email with your certificate of insurance and the terms and you’ll find out in there what you are entitled back.

hopefully it will just be a small admin fee but you’ll get the unused part back.

[Drivingforfun]

Paying insurance monthly is more than likely not a "pay as you go" type scheme but a 12 month policy, with the insurance company simply providing you with a loan

This matters as it's not a matter of simply cancelling and parting ways, rather you get a refund of any unused remaining time on the policy, minus an admin fee, and use that money to settle the loan - which can include interest or some kind of early payment fee

Basically it means there will be a small but not insignificant amount left over owed one way or the other - maybe up to around £100-150

Advice for the future, if you don't have the funds to pay in full, get a bank loan or credit card and use that to pay for the policy in one go, because it'll likely be cheaper interest-wise

I hope this helps!