If you’ve had a crash in your car and the vehicle is now completely unusable, or your motor is so old that you don’t think it’s worth the time and effort to sell it then you may be considering taking it to a scrap yard or spare car parts dealer – but what impact might this have on your insurance?

Simply put in most cases it won’t have a negative impact at all – and in fact scrapping a car could turn out to be a real positive for your car insurance.

If you’ve been involved in a crash with another motor and your car is a write off, but you are partly or fully to blame for the crash, you could face increased premiums if you make a claim on your insurance. As well as this you could lose any entitlement to no claim’s bonuses or other agreements that came with your deal.

If you were already considering getting a new car then your crash may turn out to be a positive. By using car scrapping services you bypass making a claim on your insurance, and instead you can use the cash you’ve made to put towards a new vehicle.

This means that your insurance company will be none the wiser over your accident, so you won’t lose any entitlement and you will also avoid the increased premiums and costs that often come alongside a claim.

Obviously scrapping your car in this way is not an option for some involved in road traffic accidents – for instance if the other motorist involved in a crash wants to make a claim or your car is brand new and you were planning on keeping it for some time then it makes more sense to go through the insurance claim channels.

If you haven’t been involved in an accident but your car has been off the road for some time, or is in such bad condition that it has already failed, or is likely to fail, its MOT, then scrapping could also be a good option.

Remember that under some circumstances if you scrap a car which still has insurance validity on it then you may be able to transfer your car insurance to your new motor, depending on its power and how similar it is in specification. It’s definitely worth enquiring with your insurance company as to whether this may be the case before forking out for a new deal.

Categories: Car Insurance