Introduction
Thinking of selling your car but still have months left on your insurance? Don’t worry — you have options. Many drivers don’t realize that it’s possible to handle insurance wisely during the sale. This guide explains how to transfer car insurance policy when selling a vehicle, including whether you can move it, what documents are needed, and other choices like refunds or transferring your NCD (No Claim Discount).
Can the Policy Be Transferred?
In Malaysia, car insurance is tied to both the vehicle and the owner. Once the car is sold, the policy cannot simply follow the car to the new owner. Instead, you have three main choices:
- Cancel the policy.
- Request a prorated refund.
- Transfer your NCD to a new car.
What Are the Options?
| Option | What It Means | When to Choose |
| Cancel the Policy | End the policy immediately. | If you no longer own any car. |
| Prorated Refund | Get a refund for the unused months. | If you sell early into the coverage period. |
| Transfer NCD | Move your accumulated No Claim Discount to your new vehicle. | If you’re upgrading to another car. |
Steps to Transfer or Cancel Policy
- Prepare your documents
- Car sale agreement or proof of ownership change.
- Original insurance policy.
- NRIC copy.
- Car sale agreement or proof of ownership change.
- Contact your insurer
Visit the branch or use online service channels. - Complete the request
Submit the cancellation or NCD transfer form. - Process confirmation
Insurer will issue confirmation of refund or transfer. - Update JPJ records
Ensure the vehicle ownership transfer matches your insurance changes.
Example Scenario
Aisyah sold her old sedan in June but still had 6 months left on her policy. Instead of letting it go to waste, she requested a prorated refund and moved her NCD to her new SUV. Result: she saved money and didn’t lose her 55% discount.
FAQ
1. Can I transfer my insurance directly to the buyer?
No. The new owner must buy their own policy.
2. How long does an NCD transfer take?
Usually 1–3 working days, depending on the insurer.
3. Do all insurers give refunds?
Yes, most do — but only if you cancel early and provide proof of sale.
Conclusion
When selling a car, don’t let your insurance go to waste. Learn how to transfer car insurance policy when selling a vehicle by checking your options: cancel the policy, request a refund, or move your NCD to your next car. With the right steps and documents, you can save money and protect your discount for the future.
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