What should I do with my insurance if I sold my car?
The moment you receive a car in your name, you are obliged to take out insurance. As soon as the car is sold, you can terminate the insurance. How do you do that and what happens to the car insurance?
As an owner of a car, you are obliged to insure the car at least against third-party liability (WA). Even if the car is not on the public road, you still have an insurance obligation. Checking this is simple. Insurers supply data about which license plates they have insured. This file can be compared with the file that shows who has which number plate in their name. Is a licence plate not in both files? Then something is wrong. If your car is sold, the link between your name and the licence plate will be broken. You can terminate or suspend the insurance as of the sale date.
What happens when your car is sold?
After your car has been sold, you will receive a certificate of clearance. With this, you can prove that the car is no longer in your name. The insurance obligation now lies with the new owner. With the indemnification certificate you can terminate or suspend your car insurance. Which of the two options you choose, depends on your own preference. We explain the options below.
You buy another car at short notice
You can temporarily suspend the car insurance. This means that the insurance is frozen as of the sale date. You no longer owe any premium and the premium that has been paid remains in the policy. As soon as you register another car, the insurance becomes active again. The advantage of this is that the insurance does not have to be terminated and applied for again. Besides convenience, there is also a financial advantage. The policy costs are lower. A disadvantage is that you put the new car on the same insurance again. By comparing, you may find a cheaper insurer with similar or even better policy conditions.
You will not buy another car in the short term
You have sold your car, so you can terminate the insurance. The insurer will refund the premium paid in excess. You will receive a new policy document which shows that the car insurance has been terminated with effect from the date of sale. This also shows how many claim-free years you are entitled to. You can use these as soon as you insure another car in your name. Please bear in mind that the accrued claim-free years are only valid for a limited period. After one or more years (this differs per insurer) the claim-free years expire.
Have you sold your car, but have several cars in your name? Perhaps it is an option to use the accrued claim-free years for this car insurance.
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