What Happens To Your Car Insurance In Case Of Sale?

The sale of a vehicle means putting an end to the contract of insurance. The cancellation terms are governed by the law and follow avoids surprises.

 

The suspension of car insurance Car Insurance Contract

 

If the insured decides to sell his car, he must inform his insurance company. The latter then proceeds to the suspension of car insurance. This suspension occurs rapidly (most of the time, the day of the sale at midnight). When the insurance company suspends car insurance, all the guarantees subscribed are no longer effective.

 

Following the suspension, if the insured wishes to permanently terminate his car insurance, he must send a registered letter with acknowledgment of receipt to the insurance company. This letter should present all the necessary information to allow the insurance company to identify the insured, his vehicle and the contract. The insurance company has a period of ten days after receipt of the request to proceed with the termination.

 

Namely at the request of suspension of car insurance, termination occurs automatically within six months.

 

Upon termination, it is important to review the amounts paid (or collected), especially if they have been after the termination. Indeed, unless specified in the car insurance policy, the insurance company cannot claim compensation for termination.

 

Note: Some car insurance contracts can lead to compensation payments up to six months of premium.

 

Buying a new vehicle

 

If the sale of the vehicle is followed by the purchase of another vehicle, it is possible to ask the insurance company to defer the cheap no deposit car insurance suspended on the new vehicle. However, depending on the technical characteristics of new vehicles, the conditions of car insurance can vary.

 

Namely: it is necessary to be assured at least a third to circulate legally.