Ques: What is the future of my car insurance when I sell my car out?
There are two options available in this scenario.
The new buyer can transfer the policy in his or her name. For that, the new owner needs to make an application to the insurer. However, the NCB will not be transferred and will be retained by the seller. Secondly, you can sell your insurance and keep the NCB to transfer in your new car. You can also get a refund for your unexpired policy provided you haven’t made any claim. The buyer can also transfer his previous car’s NCB in the new car. Please note that, you can only cancel the policy if you can provide the proof that the car is covered by another policy.