One of the biggest incentives for most people when scrapping a car is the financial aspect. Scrap cars aren’t worth a fortune, but getting a fair price for doing the right thing is only right.
But what about getting at least some money back for your unused tax and insurance? If you’ve paid tax and insured your car for some time to come, what happens when you scrap your car?
The answer, to an extent, varies from one case to the next. Though in most instances, you can indeed walk away with a little extra cash in your pocket.
Will I Get Any Tax Back After Scrapping My Car?
The short answer to this question is yes, you will. Best of all, it’s something that happens automatically in most instances. The only proviso is that you have at least one full month of prepaid tax at the time you scrap your car.
When you inform the DVLA that your car has been scrapped, the refund will be processed automatically. It will be calculated on the basis of how much paid tax you have left, and the refund sent your way accordingly.
If in doubt, the DVLA has a dedicated vehicle tax refund page that can be used to tell them direct you’re scrapping your car and would like some cash back. After confirmation of receipt of your application, you can expect your refund to be processed within six weeks.
Quite a while to wait for what could be a small sum of cash, but still – it’s your money and you’re entitled to it!
Can I Reclaim Anything On My Car Insurance?
This is where things get slightly sketchy, as it depends entirely on your insurer and the policy you took out. In most instances, decent insurers will offer refunds in a similar way to tax refunds.
Depending on how long is left on your policy, a percentage of the money you paid will be refunded. This can be anything up to 100% of the outstanding insurance, but may be slightly less where fees and commissions apply.
However, there are some less-than desirable insurers who offer no such refunds whatsoever. Their policies are peppered with clauses that don’t exactly work in favour of the customer. Sadly, once you’ve signed on the dotted line, there’s no escaping the terms and conditions of your contract.
Either way, it’s worth getting in touch with your insurance company to see where you stand. Particularly if you intend to take out a new policy with them for your next car, they’ll most likely be lenient.
If not, you at least know it’s time to take your business elsewhere!
Call the Team at Take My Scrap Car
If interested in learning how much your scrap car could be worth, we’d be happy to provide you with an obligation-free quotation. Simply complete the form on our website and we will get back to you, or call anytime for a chat with our team.
Calculated on the basis of scrap values on the day, we ensure the best possible price for every scrap vehicle. Call or e-mail anytime to learn more.
