Why you still might need to pay your car insurance premium AFTER you sell the motor

DRIVERS might be left footing the bill for car insurance premiums long after they've sold the motor.

Terms and types of conditions of most policies suggest that if you've designed a declare that year you won't be capable of getting reimbursement if you sell up.

And if you're paying monthly you'll need to keep up payments 'till the end from the policy.

The same applies in case your car is a write-off.

You'll have to continuing make payment on policy premium to get the payout for the motor when you claim as part of the settlement.

It's particularly not so good news if you had to claim if this wasn't your fault – for example the at-fault party didn't leave their details.

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And you could be left paying hundreds even if the claim you've made was minimal – like scratch repairs or windshield replacement.

Plus, generally, you'll need to pay a administrative cancellation fee to end the policy early – normally around lb50.

And if you just cancel the direct debit thinking you're home free – your credit rating is going to be affected and you'll be chased for payments.

Insurers advise that if you replace your car, you can simply amend the coverage using the new details rather than cancel the premium altogether – and it means you pay the alterations fee.

A spokesman in the Association of British Insurers (ABI), said: "Most people taking out a car insurance plan for any year will need it for that full year.

"Where customers want to cancel a policy in the middle of, they ought to look into the relation to their policy and talk to their insurer."