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What should I do with my car insurance when I scrap my car?

As soon as your car is recovered, and the V5C log book slip has been completed and returned to the DVLA, you will no longer be responsible for the vehicle – so you can cancel your insurance.

It’s a good idea to talk to your insurance company about cancelling – as they’ll be able to let you know if you’re entitled to any refunds, or whether you can transfer your cover to your next car. 

What if you’re collecting my car from private property?

If your car is being stored on the road until collection, you’d be breaking the law if you cancelled the insurance before the car is taken away by our scrap partner. However, if you’re keeping your car on your own private property, you are under no obligation to keep your insurance running. 

Remember though; if you do cancel your insurance completely, you may not be covered for incidents like theft or fire damage – so you should always seek advice from your insurance company before you cancel your policy.

What if my car is already SORN and off the road?

If you have made a Statutory Off-Road Notification for your vehicle and you’re just waiting for it to be collected, your insurance company may be able to reduce your cover to account for the fact that you’re not driving the car. Some insurance companies offer ‘laid up’ or ‘SORN’ cover, so it can be worth asking your provider – as it may save you some money until the car’s collected.

Do I need to keep the car insured while it’s being transported?

As soon as the person collecting your car begins recovery, the car becomes their responsibility – and that includes the journey your vehicle will make to the scrap yard. You don’t have to worry about the car when it leaves your possession – as our collection partner’s insurance will then take over. 

Will I get an insurance refund if I scrap my car?

In some cases, you may be issued a refund for any insurance cover period that you’ve paid for – but no longer require. Whether you’re due a refund will generally depend on how you’ve paid for your policy; if you’ve paid upfront for the year, you may be entitled to some money back – but, if you pay monthly, you may find that your insurance company will just cancel future payments. If you’re not sure, contacting your insurance company directly will get you a definite answer based on your specific circumstances and policy.

Other related FAQs

To get an accurate instant quote for your specific make and model, just enter your car registration and postcode.

If you’re entitled to any unused road tax when you scrap your car, you should get in touch with the DVLA to reclaim it. Since tax discs were phased out, this can no longer be done at a post office – so you’ll need to contact the DVLA directly, either on the phone, by post, or using their website.

Our collection agents work contact-free and all payments are handled online. When it is required for you to show photographic ID simply put this down and our collection driver can then assess and record the information without touch.

To scrap your car legally, the three absolute musts are you must use an Authorised Treatment Facility (ATF), ensure your logbook (V5 certificate) is completed correctly, and, if the vehicle’s to be destroyed, obtain a CoD (Certificate of Destruction).

When a car is scrapped, any hazardous materials are removed, along with any parts considered harmful to the environment. Tyres will be removed for recycling, the car will then be crushed and separated into plastic, fibre and metal, and recycled.

Yes – it’s important that you inform the DVLA when you scrap your car, as you could be liable for any on-going charges relating to it if you don’t. The quick and easy way to inform the DVLA is by completing and returning section 9 (or section 4 on post-April 2019 documents) of the V5C log book form.

When scrapping your car, you must inform the DVLA. You’ll need your logbook to pass onto the ATF (Authorised Treatment Facility). Afterwards, you’ll be given a Certificate of Destruction (CoD).

Yes. Vehicle tax is no longer transferable from owner to owner – so, if you’re scrapping your car, we recommend that you get in touch with the DVLA soon after collection to reclaim any tax that may be owed.

It’s illegal to scrap someone’s car without their permission and take payment. The Scrap Dealers Act requires that individuals scrapping cars provide photo ID and proof of address and are never paid in cash, ensuring transactions can be easily traced.

Someone else can scrap your car for you but they must take it to an authorised treatment facility (ATF) and hand over all appropriate paperwork for it to be done legally.

ATF stands for ‘Authorised Treatment Facility’ - another name for a scrap yard, breaker’s yard or vehicle dismantler that meets with strict government guidelines relating to the handling processing of End of Live vehicles.