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

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

Terms and conditions of most policies state that if you've made a claim that year you won't be able to get a refund if you sell up.

And if you're paying monthly you'll have to keep up payments until the end of the policy.

The same applies if your car is a write-off.

You'll have to continuing paying the policy premium in order to get the payout for your motor if you had to claim as part of the settlement.

It's particularly bad news if you had to make a claim when it 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 made was minimal - like scratch repairs or windshield replacement.

Plus, in most cases, you'll have to pay a administrative cancellation fee to end the policy early - normally around £50.

And if you just cancel the direct debit thinking you're home free - your credit rating will be affected and you may be chased for payments.

Insurers advise that if you replace your car, you can simply amend the cover with the new details rather than cancel the premium altogether - and it means you only pay the changes fee.

A spokesman from the Association of British Insurers (ABI), said: "The majority of people who take out a car insurance policy for a year will need it for the full year.

"Where customers do want to cancel a policy part way through, they should check the terms of their policy and speak to their insurer."