What to Do When Selling a Car with Insurance Still Active?
2 Answers
After completing the vehicle transfer procedures, both the buyer and seller should bring the transfer receipt, a copy of the vehicle license, the insurance policy, and their ID documents to the original insurance company to process the change of policyholder. The original policyholder should bring their ID card and the insurance policy to the insurance company to cancel the insurance. After the original owner cancels the insurance, the new owner can bring the new vehicle license and the transfer certificate to apply for new car insurance.
Oh, I previously canceled my car insurance before it expired by directly contacting the insurance company. They will require you to provide proof of selling the car, such as a sales contract or transfer documents, so they can terminate the policy. Typically, they can refund the premium for the remaining days, but deduct around 10% as a handling fee, which means you can save some money back. Remember to handle it early to avoid liability in case the new owner gets into an accident while the insurance is still under your name—I once delayed and almost got into trouble. Also, clearly communicate the insurance status to the buyer and ensure they have purchased new insurance, which will make the transaction more secure. The whole process is quite simple—just make a call or do it online—it doesn’t take much time, but the key is to keep all records in case of disputes.
