What to Do with Old Car Insurance When Trading in an Old Car for a New One?

[OFelicity]

Submit a written request for insurance cancellation to the insurance company, stating the reason for cancellation and the time of cancellation, then sign or stamp it and submit it to the insurance company. The insurance company's business department will issue a cancellation endorsement. Based on the cancellation request, the insurance company will issue a cancellation endorsement, specifying the cancellation time and the amount of the refund. The insurance company will retrieve the car insurance policy. Go to the insurance company's finance department to collect the refundable insurance premium. Bring the cancellation endorsement and your ID card to the insurance company's finance department to receive the refundable insurance premium.

[Genesis]

Last time I replaced my old car, I specifically handled the insurance matters. On the day the old car was sold, I called the insurance company to apply for policy cancellation. The customer service representative calculated the remaining premium for me and refunded the money to my bank card after deducting a small service fee. At that time, I was quite emotional that I hadn't made any claims in five years of driving, which saved me a lot on the refunded premium. The new car was picked up at the 4S store, and the salesperson suggested directly insuring it with their partnered insurance company, so the no-claim record from the old car could still be used, effectively giving a 30% discount on the new car's premium. However, I must remind you that you need to bring all the required materials like the vehicle registration certificate for the cancellation.

[Briella]

When trading in our old Accord, we really crunched the numbers on the insurance. The commercial insurance can be refunded for its remaining value, but it's a shame that compulsory traffic insurance can't be refunded. It's best to communicate with the insurance company about cancellation one week in advance, and remember to bring the owner's ID card and the original policy. On the day of getting the new car, I specifically printed out the no-claims certificate for the old car, and the new insurance company continued the discount based on this. You should calculate the days—the cancellation period after the old car is transferred is 30 days, so don't let it expire.

[DiClara]

Our trade-in customers often ask about insurance procedures. The process is actually simple: the commercial insurance should be canceled on the same day the old car is sold, and the insurance company will refund you on a pro-rata basis. New car insurance can be arranged directly at the 4S store before license plate registration. The key is to keep the old car's insurance certificates, especially for long-term customers who haven't filed any claims for three consecutive years—transferring to a new car can save thousands in premiums. If you're too busy to handle the cancellation yourself, most dealers can assist for a small service fee.

[VanJulian]

A friend shared an insurance hassle he encountered during his car replacement last month. He forgot to cancel his compulsory traffic insurance, resulting in a two-month premium loss. It's advisable to check your commercial insurance expiration date before disposing of the old car – canceling early can get you more money back. On replacement day, it's best to arrange selling the old car in the morning and picking up the new one in the afternoon, using lunch break to cancel insurance via phone. For the new car insurance, you can choose to renew with the original company; just have the agent check your old car records to transfer the discount.

[VanAriel]

20 years of driving experience tells you that the key to trading in an old car is to properly handle the insurance transition. First, three documents are essential for policy cancellation: a copy of your ID card, a copy of your bank card, and the original insurance policy. Secondly, timing is crucial—commercial insurance refunds are calculated on a daily basis, so any delay means less money back. When insuring your new car, proactively provide the old car's insurance policy, as the no-claim discount eligibility can be retained for up to two years. Once, a client of mine forgot this and ended up paying over 3,000 yuan more for the new car's insurance premium.