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What Happens To My Car Insurance When I Sell My Car?

Discover what happens to your car insurance when you sell your vehicle. Ensure a smooth transition of insurance coverage to avoid claim rejection and provide coverage for the new owner.

  • 26 Feb 2024
  • 2 min read

When you decide to sell your car, it's important to consider the implications for your car insurance. Selling your vehicle has direct consequences on your existing insurance policy. This guide will navigate through your query: what happens to insurance when I sell my car.

When I Sell My Car, What Happens To My Car Insurance?

When you sell your car, you have to transfer your four wheeler insurance to the buyer of the car. Here is a breakdown of the process:

  1. Seller's Responsibilities: The seller must transfer the car insurance after selling car to the buyer at the sale time. It's important to claim the ‘No Claim Bonus’ (NCB) certificate during this process. It cannot be transferred to the buyer.
  2. Buyer's Obligations: Buyers need to apply for the transfer of the car insurance ownership within 14 days of the car's purchase. Failure to do so might lead to claim rejection.
  3. Insurance Transfer Procedure: The seller must inform the insurance company in writing about the intention to transfer the policy. A nominal fee for the transfer applies, along with the recovery of the NCB from the transfer date until the policy's expiry date.
  4. Buying New Insurance: If the buyer prefers a new policy rather than continuing the transferred one, it's advisable to compare insurance quotes to find the best plan that meets your requirements.

Also read:


We hope we’ve answered your question: “What happens to my car insurance when I sell my car?” You need to transfer your four wheeler insurance to the buyer of your car. The buyer also needs to apply for a car insurance transfer within 14 days of the car’s purchase.

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