Now that you’ve done the hard bit in finding a prospective buyer, here are a few admin tasks you’ll need to complete once you’ve sold your car, including what happens to your car insurance.
During Sale — Keep Your Car Insurance
Having prepared your car for sale and drafted the online ad, you may be thinking that you can cancel your car insurance, seeing as you don’t plan to drive your car anywhere.
However, no insurance means no coverage should any damage be caused by a prospective buyer during a test drive.
Additionally, cancelling your insurance also means that you won’t be covered against the unexpected, and the last thing you want before a sale is your car to be stolen, damaged in a fire or impacted by hail.
So, until you’ve transferred your rego and the car is out of your possession, it’s best to keep a hold of your current insurance policy, at least for now.
After Sale — Transfer or Cancel Your Car Insurance
Now that you’ve sold your car, what you decide to do with your insurance will normally depend on whether you buy a replacement car.
If you’re selling and buying another car, at the same time, and your insurance is with Budget Direct, then you can quickly update and transfer your car insurance cover to the new replacement vehicle. Unless you request otherwise, these changes can take effect immediately. All changes to your insurance policy are subject to meeting underwriting criteria.
It's worth noting that when you transfer your existing policy to a new car, your premium may increase or decrease depending on many factors including the car and drivers.
If you originally paid a lump sum premium, we’ll either charge you the extra or we’ll pro rata refund the difference between the new premium and the old one. Should you pay your insurance by instalments, your instalments will simply be adjusted to reflect the new premium.
If you don’t intend to replace your car, then we can help you cancel your existing insurance policy and arrange for any applicable refund to be paid to you.
Don’t Forget Your Rego
Before you pass your car over to its new owner there are some other details you’ll need to update first. These include:
- Transferring rego - Make sure to transfer your vehicle’s registration into the new owner’s name. If it’s a private sale the buyer has to transfer ownership and if it’s a public sale the dealer is the one who has to transfer the ownership. Each state varies in their requirements so please ensure you check what you have to do with your state or territory road traffic authority.
- Updating personalised plates - If you’ve decided to keep your personalised plates then you’ll need to let your local registration office know that they are no longer attached to your old car.
- Updating your toll account - If you have a toll account remember to update your details with your local toll road operator to avoid any additional fines or fees for your new car. Also remember to remove any toll tags that are in the car.
Budget Direct can help you manage your car insurance policy before you decide to sell, during the sale and after the sale is complete.
We can help you quickly and easily transfer your insurance over to a new car and provide award-winning Car Insurance cover with Budget Direct.