What should I do about my insurance after I've sold my car?

As a car owner, you are required toinsure your car for at leastthird-party liability (WA). Even if the car is not driven on public roads, you are still required to have insurance. Verifying this is simple. Insurers provide data on which license plate numbers they have insured. This database can be compared with the database that lists who is registered as the owner of each license plate number. If a license plate number does not appear in both databases, something is wrong. Has your car been sold? Then the link between your name and the license plate number is severed. As of the date of sale, you can cancel or suspend your insurance.

What happens once your car is sold?

Once your car has been sold, you will receive acertificate of release. This document proves that the car is no longer registered in your name. The new owner is now responsible for maintaining insurance coverage. With the certificate of release, you can cancel or suspend your auto insurance. Which of these two options you choose depends on your personal preference. We explain the options below.

You won't be buying another car anytime soon

You’ve sold your car, so you can cancel your insurance. The insurer will refund the overpaid premium. You’ll receive a new policy statement showing that the auto insurance was canceled as of the date of sale. This statement also indicates how many claim-free years you’ve accumulated. You can use these again as soon as you insure a new car in your name. Keep in mind, however, that the claim-free years you’ve accumulated are valid only for a limited time. After one or a few years (this varies by insurer), the accumulated claim-free years expire.

Have you sold your car, but do you still have multiple cars registered in your name? You might want to consider using theclaim-free years you’ve accumulatedfor this auto insurance policy.

Click here to report a change.

See also:

• Insuring a Car by the Hour – What Are the Risks?
• How do you insure a car on the weekend?
• Do you have negative claim-free years on your record? What should you do now?
• Lost Vehicle Registration Certificate