Is car insurance cancellation needed when selling a used car?

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When the car insurance period is not over but you can’t pay by installment anymore, should you have to cancel car insurance before selling used car?

This article is for people who are planning to sell their used car but are concerned about the car insurance they hold. Some might be looking to seek a new vehicle while some might just want to cancel their vehicle insurance for an easier selling process in the future. So what should we do?

The answer to this situation is depending on the seller’s decision. Because we can do it in both ways – transferring to a new car owner or canceling the car insurance before selling to take insurance premium back.

1. No need anything, just cancel it

If you don’t want to transfer your car insurance ownership to a new car owner, you can inform your insurance company to get the rest of your premium back.

*Conditions are as specified by the insurance company

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2. Need to hand over your car insurance ownership to a new one

For this case, firstly you have to recheck about your type of insurance whether it identifies the driver’s name or not. If it doesn't, you can transfer your car insurance ownership to a new owner for them to get the benefits mentioned on the insurance conditions. (For all types of car insurance)

BUT if it identifies the driver’s name (For first-class insurance only), you need to notify your car insurance company to change the driver’s name before selling. Then the company will recalculate the interest for a new owner.

If you didn’t do for changing driver’s name process, you have to pay deductible expenses when a new owner has a car accident later.

*Conditions are as specified by the insurance company

(Photo Credit: freepik)

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No selling car experience, don’t worry! Our expert staff will help you from the beginning to the end of sales. Feel free to contact us if you require further assistance.

Read more: How To Get the Best Price For Your Used Vehicle

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