Your browser version is no longer supported, so you may experience issues while using this site.
Please upgrade to a current browser to enjoy the best experience.

What happens to my insurance if I sell my car?

By  AAMI

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 on your AAMI Comprehensive Car Insurance policy within 14 days of getting the new vehicle. If we agree to insure the replacement vehicle, 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.

Read more:

Insurance is issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Read the relevant Product Disclosure Statement before buying this insurance.

*We will insure the replacement car on the same terms and for the same level of cover up to the price you paid for it, or its market value, whichever is less for the remainder of the period of insurance provided:

  • you tell us within 14 days of you taking delivery of the replacement car; and
  • we agree in writing to insure the replacement car; and
  • you pay any additional premium we require. If an additional premium is payable, we will tell you how much it is and how it is to be paid.