Introduction
When selling your old car or buying a new one, you cannot directly transfer your existing insurance. This article explains how to manage car insurance when selling, including cancelling the old policy, registering a new policy, and preserving your NCD so your coverage stays valid.
1. Steps When Selling Your Old Car
- Inform your insurer: Notify your insurance company immediately after selling your car.
- Cancel the old policy: Officially cancel the old policy. You may claim a pro-rata refund for any unused coverage.
- Keep complete documents: Retain copies of the old policy, sales invoice, and proof of handover to the buyer.
Tip: Never leave an active policy under the old owner’s name, as it can create problems with future claims.
2. Buying a New Car and Registering a New Policy
- Register a new policy: Ensure your new car has a valid insurance policy before driving.
- Preserve your NCD: Apply your NCD to the new policy using official endorsement (vehicle class must match).
Choose coverage and panel workshops: Platforms like BJAK help you pick comprehensive policies, relevant add-ons such as VIP Rescue, and approved workshops.
3. Risks If Insurance Is Not Managed Properly
- New car is not covered: Driving without a valid policy exposes you to accidents or theft without protection.
- Loss of NCD: Failing to complete endorsement can cause you to lose your NCD.
- Rejected claims: Insurance companies can deny claims if owner or vehicle information doesn’t match.
Tip: Use digital platforms like BJAK to check your new policy status and follow step-by-step guidance to avoid mistakes.
Conclusion
You cannot transfer an old policy directly to a new car, but you can preserve your NCD through official endorsement. By cancelling the old policy, registering a new policy with your NCD intact, and checking status via digital platforms like BJAK, you ensure your new car stays fully protected while keeping your premium discounts. Following these steps helps you confidently manage car insurance when selling and buying a new vehicle.
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