Thinking of selling your car and wondering what steps to take with your car insurance company? The sale of a car entails either a termination of your car contract or a transfer of your warranties. It depends on several parameters: purchase or not of a new vehicle, desire to change insurance company, etc. Let’s take a closer look at the steps and documents required to cancel the car insurance in case of transfer of vehicles.
What documents to cancel car insurance after the sale?
When selling a vehicle, the insured must justify the sale of his vehicle to his insurance company. And this in order to be able to cancel the car insurance agreement linked to the sold vehicle.
It is necessary to send several documents:
- The transfer certificate
- Cancellation letter for car insurance
Any request for termination shall be made by registered letter with acknowledgment of receipt. Your letter must mention your contract number, identification of the vehicle, date of sale. Therefore, your car contract is suspended the day after the sale precisely at midnight. Final termination will take effect 10 days after receipt of your request.
What are the obligations of each of the parties in the event of the sale of the insured vehicle?
Article L.121-11 of the Insurance Act ensures the suspension of the car contract from the day after the sale of the vehicle at midnight. From there there are two options: Your insurance is canceled or transferred as part of a new car contract.
Here are the obligations of the insured and the insurance company in the event of the sale of a vehicle:
- The insured must inform his insurance company by registered letter of the transfer of the vehicle with the exact date of sale.
- The insurance company suspends the contract from the day after the sale at midnight
- The insured and the insurance company continue to terminate the car contract with a notice period of 10 days. This procedure takes the form of sending a letter of termination by registered mail with acknowledgment of receipt.
- The insured and the insurance company can choose to transfer the contract if a new vehicle is to be insured. In this case, the insurance company proceeds to a resumption via an amendment to the existing contract.
Can you stop car insurance without selling it?
Most of the reasons for car insurance cancellation are the sale of a vehicle. However, you can terminate your car contract for several reasons:
- Selling your vehicle
- A dispute with your insurance company
- A change in your personal life that affects your level of guarantee
- Theft or destruction of your vehicle
In addition, since January 2015, policyholders have been able to cancel their car insurance policy at any time without separate reasons or supporting documents after their first anniversary. Note that you must prepare a number of documents to change car insurance, both for your new insurance and for your current one.
Reminder: Before the first anniversary date of your car contract, you must send a cancellation letter to your insurance company by registered post with acknowledgment of receipt. Your letter must state the reason for the termination and the associated documents.
What to remember if you sell your car
In relation to a car, here is a reminder of the steps to take with your car insurance company:
- Inform your insurance company by mail, e-mail or phone about the sale of your vehicle. This triggers the suspension of your contract and associated guarantees. However, you are still liable for car contributions until your insurance ends.
- Send a termination letter accompanied by the transfer certificate. After receipt, your insurance company has 10 days to close your car contract.
- Negotiate new terms with your insurance company if you want to insure a new vehicle. In this case, a termination is not necessary, only an adjustment of the contract by means of an addendum to the contract.
- Suspend your car contract while you look for a new vehicle. Upon your new purchase, your car insurance is reactivated.
And if you are selling your car to buy a new one, don’t hesitate to look around for car insurance formulas online to find the best car insurance on the market by comparing.
