What happens to my insurance if I sell my car?

By AAMI 20 February 2020

No matter what stage of the car selling process you’re at — whether you’re just considering it or about to hand over the keys — don’t forget about insurance. You’ll probably be able to keep your existing policy, even if the car listed on it changes, but there are a few things to remember.

If your car hasn’t been sold

Hold off on cancelling that insurance policy

You’ve removed your bobble heads from the dash, parked the car in the garage, and you don’t plan to use it again. Time to scrap the car insurance, right? Wrong! Maintaining your AAMI Comprehensive Car Insurance policy will keep you covered against things that can pop up unexpectedly, even when your car’s not being driven. The last thing you want just before a sale is for your car to be stolen, or damaged by fire. You’re also going to need insurance if you’re offering test drives.

Does my AAMI Car Insurance cover a test drive?

Yes! Under AAMI Comprehensive Car Insurance, you’re covered if you, as the insured driver, are present, even if you aren’t driving! So, sit back and enjoy the passenger seat for a change, while your potential buyer takes the car for a spin.

Once your car is sold

Swap the car on your insurance policy

Replacing your car with a new one is a big change, but luckily, updating your insurance policy is the easy part. You don’t have to cancel your insurance when you sell your old car. Simply update your car details within 14 days of getting the new car. If we insure the replacement car, your current policy will be updated. Simple! You may just need to pay an additional premium, if any is needed due to updated car details.^*

A new certificate of insurance will be generated and you’ll get to keep your Safe Driver Rewards credit too (you’re welcome in advance)! And if you sell your car and pick up a new one on the same day, we’ll transfer the cover from one to the other on that very day!

Explore AAMI Car Insurance

How to do this online

Swapping the car on your policy can be done entirely online! Log into My Account, then, head to the "My car" section under "Update my policy". Provide the vehicle make, model, registration number and other info (basically what you use to get a quote). Once you’ve confirmed more details, like the driver and location, the insurance transfer will be complete!

And if you’d prefer to chat to one of our specialists, just give us a call! We’re friendly!

Don’t forget to transfer the registration

Okay, this one’s non-insurancey, but we’ve dropped it in because it’s essential. The newly sold car needs to be registered under the new owner’s name—don’t forget to update these details! Call up your local registration office for more info.

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.

*We will insure the replacement car, up to its market value on the same terms and for the same level of cover as the replaced car as if a reference to 'your car' in the PDS is to your replacement car. Cover is provided from the date you bought the replacement car until you contact us to insure your replacement car, up to a maximum of 14 days. To have cover under your policy for the replacement car outside this 14 day period:

you must tell us within 14 days of you taking delivery of the replacement car; and
we must insure your replacement car and update your current policy with the new car's details; and
you must pay any additional premium we require. If additional premium is payable, we will tell you how much it is and how it is to be paid.