Can I cancel car insurance if I sell my car?
If you’re about to sell your car, you may be wondering about what to do with your insurance policy. You will have one of two options: Cancel, or transfer to a new vehicle. The process and conditions can vary between insurers, but generally policies can be cancelled or transferred quickly and easily. In this blog post, I Sold My Car will fill you in on the process and your options.
I Sold My Car – How do I Cancel Insurance?
So, you’ve sold your car – congratulations! Now it is time to cancel your insurance as you will no longer need it, and the new owner will need to obtain a new policy under their own name.
To cancel an insurance policy, all it takes is a simple phone call or email to your insurer. Just let them know the reason for cancellation, and you can expect to hear back shortly.
Most insurers will provide a pro-rata refund for any unused insurance cover. Keep in mind that some insurers charge a cancellation fee if you cancel outside of the 14-day cooling off period. This is only a small charge though, generally around $30.
Transferring Policy to New Car
If you will be buying a new car and are happy with your current insurer, you may want to consider transferring the insurance policy onto your new car. This will save you the hassle of cancelling and getting new quotes for a new policy. Keep in mind that an additional charge may apply, whether it be fees or an increase in your premium due to the type of car you have purchased. It’s a good idea to evaluate other insurers to ensure you are still getting the best deal on insurance.
Important to Note
- Don’t cancel prior to vehicle sale – You should not cancel your insurance prior to selling your car. It is important that you have a valid insurance policy so that any prospective buyers can take your car for a test drive and still be covered under your policy.
- If you cancel your policy early, you may lose your no claims bonus for that period.
- Cancellation Fees – all applicable fees and charges for policy cancellation should be laid out within your policy booklet. Make sure you check these fees before proceeding so you aren’t hit with any surprises. Each insurer deals with cancellation charges in their own way. Some may charge higher fees than others, so you should evaluate this information before choosing a policy.
- If you pay month-by-month rather than a single annual fee, you should still notify your insurer of your intention to cancel the policy. If you fail to do this, you may be hassled for unpaid premiums, and in rare situations the new buyer may even attempt to make a claim against your policy.
Seeking an easy sale? Sell to us
Whether you’re after an upgrade or simply looking to experience something different, we make selling your car a quick and easy process. We buy cars of all makes and models, and we pay fast. Our sales process is streamlined, and we are happy to walk you through the steps of cancelling your insurance so that you can trade up to your next set of wheels sooner. To arrange a quote, please contact us today.