Car Insurance When Selling A Car

Selling a car can be a stressful experience. GoodBye Car are determined to help and have put this guide together to answer any questions you may have about your car insurance when you sell your car.

Get a stress free quote for your car in minutes with GoodBye car.

What happens to my insurance if I sell my car?

You need to contact your insurance company to cancel the insurance, as the Department of Motor Vehicles (DMV) doesn’t automatically let the insurer know that you are no longer the vehicle owner. You should provide at least one week of notice to your insurer so your request has time to be processed. When selling your car, you generally have an idea of when the transaction will be complete, so set the date of cancellation to the day after.

You can find out more about selling your car with GoodBye Car, and we also have guides on selling a damaged car and selling a car with a private plate.

Can I cancel my insurance if I sell my car?

If you are not replacing your sold vehicle with another, you can cancel your insurance. However, if you are buying a new car you should be able to contact your insurance company and change your car to your new one.

Can I sell my car without insurance?

It is mandatory for used car sellers to have a valid insurance cover on their vehicle. Using a car without a valid insurance policy is illegal.

If you try to sell your car without valid insurance you could run into various problems, including that the registration can’t be transferred to the new owner. So if they are caught driving the vehicle before registering it in their name, you may have to pay the fine. You will also have to pay the penalty and renew the insurance to release the car if the vehicle is impounded (even though it is in possession of the new owner). 

The easiest way to sell your uninsured car without spending too much is to opt for a third party car insurance policy, which lets you legally sell your car. A third party car insurance cover is where the liability of the insurer is only towards the vehicle or persons you hit and not towards damages towards your vehicle or the person driving it.

Find out what documents you need to sell your car, and if you can sell your car and keep the number plate. If you have any other questions about GoodBye Car, we will be happy to help.