Have you decided to sell you old car? Hold on, before you go ahead with the transaction there are a few things that you must have in order. One of the important points to keep in mind is the vehicle insurance. While you decide to sell the car, your car may still be covered under the insurance. It is important to know when is the right time to cancel the insurance as you prepare to sell your old vehicle at cash for scrap car Sydney and upgrade to a new one. You can also choose to transfer your old car insurance to your new car. The policy renewal is a great opportunity to do this transfer. If your old vehicle has been lying in your garage for some time and you want to get rid of it, car removals Sydney can help you dispose it.
What is the right time to cancel a car insurance before selling it?
Imagine, the vehicle you sold had an insurance cover that was on your name. The new owner of the vehicle met with an accident and destroyed it, now your license gets suspended. There are steps you can take to avoid getting into such a situation and protecting yourself and your license.
You must follow all guidelines of vehicle transfer while selling the car so that you transfer complete ownership and you are not help responsible for any untoward incident. To avoid being caught for not having a vehicle insurance you must wait until the car is legally sold and then cancel the insurance. Before going through the cancellation, confirm with the Department of Motor Vehicles that the vehicle has been registered under the new owner.
If you find yourself caught in a case where your license gets suspended because a vehicle you already sold met with an accident, here is what you can do:
- Obtain a copy of the form and notification that you filed
- Submit it to the Department of Motor Vehicles
- Along with the form submit bill of sale
These steps usually help one clear their name and getting the charges dropped. In case, it doesn’t happen you can seek expert legal guidance. Junk car removals Sydney can help you if the process becomes overwhelming and stressful.
Process of cancelling vehicle insurance
Cancelling car insurance is a very simple process. One you are sure that the time is right for cancelling your insurance and you have confirmed that it is now registered under the new owner. You just need to pick your phone and call the insurance company. They will ask you to sign a cancellation document and if you have made any advance payments that will be refunded to you. If you are upgrading your vehicle then you can also discuss with the company about insurance for your new car. You may check for insurance transfer options if the new buyer is interested in continuing with the same insurance plan, though some administrative charges and fees would apply.