What Happens to Insurance If I Sell My Car?

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Are you also puzzled whether new insurance is required for your new car or not? Of course, car insurance is mandatory when you purchased a car. The administration fee, other charges for cancellation and renewal charges can be a dodge. Before that, you should be aware of the procedure and your legal rights. While haggling for the best price, most people forget about these legalities, leaving them in trouble later.

If you are reading this blog, you are not one of them, and fortunately, you will save a boatload of cash after it. So, follow us to the end.

Do I have to cancel insurance when selling my car?

While selling your caryou are not required to cancel car insurance and start from the beginning.

Mainly, the insurance companies provide an option to transfer the policy to your new car. With this, you will get a new insurance certificate by paying just a small administration fee. If your new car has a different specification, you should expect a change in premium too.

You have the option to cancel your car insurance (if you are not on the correct terms with your insurer) and get new insurance, but keep in mind that you need to pay a cancellation fee.

Your current car’s tax:

When selling your car online UK, you must not forget about your vehicle tax. It is crucial to inform the DVLA about the selling of your car or send them your car’s logbook by post. Doing this is in your favour, as you probably would not want to land with new owners’ future convictions and offences.

After informing DVLA that you are no longer the vehicle owner, any expected tax refund is automatically generated.

Swapping your car insurance

It is of utmost significance to notify the insurer about your new car and any modifications you plan to make. It is because the insurance companies make sure that you get the right cover. If your brand-new car is more valuable than the old one, you should expect a rise in premium.

Can you sell a car without insurance?

Yes, it is legal to sell a car without insurance if you have turned in your plates already. However, if the car plates are with you with active registration, it is illegal to sell them without insurance. To comply with state law, either the buyer or the seller must have auto insurance.


Most people haggle for the best price while ignoring their insurance policy. Doing this can cost them cancellation fee and administration fee. If you buy a new car without informing the insurance company, you are risking your cover, so it is essential to let them know about the new car and modifications.

If you have any other insurance queries, you can comment below or check our website for more information.

Best way to sell a car online and by considering all legalities and insurance.
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Best way to sell a car online and by considering all legalities and insurance.
Sell car online can be thrilling with all the legalities, car tax, insurance, DVLA forms. while selling, you have to consider some features too.
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Compare Market Insurance
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