What Happens to your Insurance Cover When You Sell your Car?
Selling a car is not just about setting the price and getting a new buyer. There are a lot of legalities involved and you must deal with them one at a time. One of the most important things that you must keep in mind is your insurance. This is a costly investment and you could easily lose a lot of money. Therefore, do you know how to navigate through the insurance policies when selling your car? Here is a breakdown of the things you should do to remain covered.
The Existing Insurance
When you decide to sell the car, you don’t necessarily need to cancel your insurance covers. You might be able to transfer the policy to your new car. However, you need to confirm with the company first. If you buy a different car, say, with a higher value and different specifications, you will need to modify your insurance terms. However, there will be an additional fee. You may also decide to entirely cancel your car insurance San Diego and register a new one with another insurance company. Whichever the choice, you will incur an extra cost. Immediately you sell the car, inform the DVLA to ensure you are separated from any future offenses of the new owner.
Swapping the Insurance
You will need to inform your insurer about your new car and the adjustments you would like to make to your coverage. Remember that your insurance price will increase if the car is more valuable and powerful than your previously covered car. You will also have to pay a small amount of money for the swap.
On the same deal, your insurer may offer a better deal for your new ride. Go for a bargain and secure yourself the new and better deal. However, remember everything good comes at a higher price. Ideally, before buying the new car, inform your insurer about the decision. It will help you to know if they will cover your new wheels. You will also know if the cover will work for both cars before you release the old one.
Remember that insurance prices change daily. Therefore, keep your company informed about the new car. You can get a quote before buying your car to ensure your price does not go up before you start the insurance. The premiums keep going up and you may have to pay more if you decide to wait to start the insurance after buying the car.
If you will let the prospective buyers for the test drives make sure your insurance company knows about this. They can tell if they will cover you or if you will be on your own. If you are lucky, your company will cover you during the test drives. However, you must be eligible and apply for the coverage.
When you decide to sell your old wheels, your insurance can be transferred to the new ones. However, you must follow the right procedures. Keep your insurer updated on your decision to make the necessary arrangements. It is essential to confirm with your insurer about the coverage before you sell the car. Some companies can only cover one vehicle at a time. Hence, be on the lookout.