You’ve finally decided to scrap your van. The process is straightforward, but you’re probably not familiar with all aspects. Primarily, will you need insurance when scrapping a van?
This article will give you the answer. We’ll explain what insurance policies generally include, what circumstances require you to notify DVLA and other essential aspects.
Do You Need Insurance If You Want to Scrap a Van? London Coverage Explained
Your car insurance policy might be complicated. Also, not every provider offers the same conditions to their clients, but this doesn’t apply to scrapping a van.
The requirements are mostly the same: if your vehicle is parked, it needs to be insured, regardless of the condition. You must ensure the policy covers your van until a van scrap company picks it up. Only after the business collects your four-wheeler are you free from responsibility.
For this reason, you can scrap vans even if they’re not insured. Most companies have recovery vehicles to carry or tow your four-wheeler to their facility. The service is covered. If anything happens to your four-wheeler on the way to the scrapyard, you won’t be liable.
But what if you SORN a vehicle? In other words, what happens if the van is parked and you’ve obtained your Statutory Off-road Notification?
In this case, you don’t need insurance, provided you’ve notified the Driver and Vehicle Licencing Agency (DVLA) that your vehicle is off the road. Plus, a policy may have saved money before the scrap, but the four-wheeler will no longer concern you in the event of theft or damage. Therefore, you may want to consult your insurer before cancelling the policy if you wish to retain the no-claims bonus.
What Circumstances Require You to Notify DVLA?
As previously indicated, you should give the DVLA a heads-up when scrapping a car. Tell them you’ve decided to SORN a vehicle, as this exempts you from taxes while it’s off the road. Additionally, you may be entitled to a refund if you’ve paid a few months in advance.
Informing the DVLA you’ve decided to SORN a vehicle is simple. The easiest way to do so is to visit the website and provide the necessary information. The details you’ll need to enter include your personal information, the address and name of your scrapyard, V5C logbook, and registration number.
As for your V5C, you’ll need to type in the 11-digit number. It should be in the fourth section (logbooks released after April of 2019) or the ninth section (logbooks released before April of 2019). Complete the form with the necessary details, and you’re good to go. The DVLA will be notified you’ve hired a van scrap company.
If the website isn’t working, no worries – you’ll still be able to tell the DVLA you want to scrap a van. London residents can do so by post. This is a slower method, but it might be even more straightforward. Fill out the fourth or ninth section from the V5C logbook. Send it to your DVLA using the following address: DVLA, Swansea, SA99 1BA
Again, you’ll need to state the address and name of your scrapyard. After sending the notice, the DVA should send a confirmation message within a month.
What If You Don’t Have the V5C Logbook When You Want to Inform DVLA?
If you misplace the V5C logbook, there’s no reason to panic. All you need to notify the DVLA is your reference number.
The rest of the process is the same. Tell the DVLA your name, and address, as well as the information about the dismantler who’ll be scrapping your vehicle. If you can’t find the necessary details about the company, wait for the driver to arrive at your home. Ask them about the address and name of the business before notifying the DVLA.
Should You Take Out Two Policies If You Wish to SORN a Vehicle?
When must your vehicle have valid insurance cover may not be the only question you’re asking when scrapping a van. You’d also like to know if you should apply for two policies. Many people do so when a new van is on the way but is this a smart decision?
The short answer is no because it’s an unnecessary expense. You’re much better off arranging the pickup of your old van on the same day as the delivery of the new model. This way, you’ll only need to adjust the current policy. Coughing up money for another one won’t be necessary.
You Inform DVLA But Do You Let Your Insurer Know You’re Scrapping Your Vehicle?
You’re not required to inform your insurance provider when scrapping vans. However, you should notify them. Otherwise, you’ll keep paying premiums for a vehicle you no longer use.
Should You Hire a New Insurer Once You Inform DVLA and Buy Your New Van?
Many motorists consider the vehicle shift a perfect opportunity to change their insurance provider. The no-claims bonus might be higher, and customer service may be more helpful. Unfortunately, this isn’t possible in some cases.
Certain insurers offer partial refunds if you pay for the entire year in advance and your policy applies for a few more months. If your provider works like this, you’ll be able to opt out of the agreement and switch to a new company without consequences.
By contrast, other companies require you to stay their customer until your contract is terminated. This means you’ll need to use their services for as long as the current policy is effective. Only when the insurance expires can you seek a more advantageous or cheaper provider.
Remember, this is how insurance companies generally operate. The only way to accurately determine the conditions is to contact your insurer directly. After all, their job is to keep you as a client, so they might be willing to tweak your policy to match the quote from other companies.
When Must Your Vehicle Have Valid Insurance Cover and Other Questions Answered
Many things can impede the scrapping process, but insurance shouldn’t be one of them. Even if your vehicle isn’t insured, you’ll be able to scrap a van. Most companies have their own policies, but be sure to inform your provider and the DVLA. You can save yourself a lot of money and trouble.