Voluntary Termination - maintaining insurance

[IanRob82]

Hi,

First time here. Thanks in advance for any help.

I'm planning on handing my Megane back under VT. Renault finance have said I need to maintain my current insurance until they have collected the car. Is this correct? My understanding is that as soon as the agreement is terminated the vehicle becomes their concern and under their own insurance.

Is this correct?

Thanks

Ian

[R0b]

Re: Voluntary Termination - maintaining insurance

Strictly speaking, yes arrangements for insurance and tax will be their role when the agreement terminates as all liability under it falls away, except for the provisions stated in section 100 i.e. 50% and unpaid arrears etc.

Bear in mind that you also need to take reasonable care of the car whilst it is in your possession. Renault may argue that this would fall under the 'reasonable care' category and that having the car on the road (unless its sitting on a drive) but the CCA specifically sets out your liability under section 100 and, any contractual provisions which impose additional liability (whether directly or indirectly) are void and unenforceable.

The template letter on here suggests termination effective immediately but if your planning for example to terminate at the end of the month then you might want to give Renault sufficient notice to arrange the insurance and tax - it will show you are being reasonable rather than handing it to them last minute and being unreasonable.

The termination letter would need to be amended to say that the agreement will terminate on X date. It would also be sensible to mention that Renault will need to arrange for tax and insurance on the vehicle as these will be cancelled on the day of the agreement ending since you will no longer responsible for these charges.

[IanRob82]

Re: Voluntary Termination - maintaining insurance

Hi R0b.

Thanks for the advice.I'll keep the car on my drive but I think I'll err on the side of caution and keep it insured.

I've called RCI and they have sent the VT pack that I won't be signing, so they are aware of my inention. I'm around the mileage that I'm meant to have done. There are a couple of minor scuffs but nothing unreasonable for a 4 year old car.

So far this site has been incredibly helpful.

Thanks.

Ian