Let’s face it, car insurance isn’t the most exciting of topics, but it’s something you’ll need to think about when it comes to selling your car.
Find out more within this guide so you know what to do with cancelling your insurance if you’re planning on selling your car.
The short answer to this question is a long as the car is no longer registered in your name, then yes, you no longer need insurance for it.
Once you have sold it, you’re no longer required by law to have the car insured so you can crack on and cancel it.
Your existing car insurance
It’s pretty straightforward really. When you’re selling your car, you don’t necessarily have to cancel your car insurance and start all over again.
You should find that you’re able to just change your car partway through your insurance and your insurer will just transfer the policy to your new car, it’s as simple as that.
So, there might be a small admin fee in doing this, but it's worth it if it means you get to be insured on your new whip. Or you could cancel your current car insurance and take out a new one with a different insurer but there will more than likely be a cancellation fee for this.
Another bright idea might be to transfer your existing insurance to your new car and if you really want to switch, then do this when it comes up for renewal.
Cancelling if you are not replacing your car
Fed up of cars altogether and don’t plan on replacing your current one? If so, then it’s best you cancel your car insurance as soon as it's sold.
From the minute you’ve sold your car and you’re no longer using it, there’s no need to pay for its cover anymore, end of.
The only thing is though, if you’re selling your car and you’ve got a couple of months left on your insurance, your cancellation fee might be more than the refund you would potentially receive, so it might be an idea to just see the end of your policy through.
Just be careful of doing this though as imagine if the new owner of your car was to be involved in an accident. There is the possibility that they could try and make a claim on your policy. We know if this happened to us, we’d be livid!
This could cause all sorts of issues, so it's best to approach with caution and 100% cancel your insurance if you are definitely not thinking about replacing your car.
Shopping around for a new deal
If it comes down to it and you decide that getting a new car means you may as well get new insurance while you’re there, then let's talk shopping.
The best thing to do in this situation is to shop around and see if you come across an attractive offer. You never know, you might find yourself a bargain.
The main to look out for and be aware of is fees. Cancellation fees are a pain, we’re pretty sure you don’t need for us to tell you that.
Before you get too carried away with yourself and with your new wheels, don’t forget to arrange that cover before picking it up. There’s nothing worse than being landed with a hefty fine that you didn’t ask for, which is what will happen if you're not insured.
Will you get a refund if you cancel your insurance?
Normally, the general rule of thumb is that if you cancel your insurance early, then you’ll get refunded for any remaining months. You’ll find that most companies won’t refund the last few months of a policy, but you should get the remainder of what you haven’t used back as a refund. If not, then we’d be on the phone with them.
For example, if you have six months left on your policy, you won’t necessarily get this amount worth of premiums back – you’re more likely to get about four. The best thing to do is to check with your insurance company.
Cancelling within 14 days
Sound familiar? It's true that companies have different policies when it comes to cancelling your insurance, you could either do it over the phone or in writing too.
If you do come to the decision of selling your car within 14 days of insuring it, then thanks to the cooling-off period this means that you can cancel your policy and get a full refund of any premiums you have paid to date.
In short, cancelling your car insurance within 14 days of it being purchased, usually means a lower fee or no fee at all.
If you've ever wondered "where can I sell my car?", we can provide you with a free quote from our fantastic bunch of used car buyers from without the UK. You can get a realistic idea of just how much your car is worth – and what our top buyers are willing to offer you for your car. There’s no need to enter any of your personal details, just your reg number will do nicely.