This may sound dumb, but it is important to remember to cancel your car insurance when you sell the car.
And yes, we do know of people who have carried on paying out insurance premiums on cars for years after they sold them.
How does this happen? Generally car insurance (and most other insurance) is paid by debit order or stop order. The car gets sold. The seller does not check his bank statements (another mistake!).
"Yikes! What is that monthly amount coming off my bank account?"
Phone bank.
Bank guides you to insurance company.
"Seems like it is an insurance premium on your car, registration number xxxxxxxxx?"
"But I sold that three years ago".
"It seems", Sir / Madam, "that you did not advise us."
Money down the drain.
Moral of the story? Review all your insurances annually, update those that need updating, and cancel the car insurances and others that you no longer need.
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