Can I sell a car without insurance?
Yes, it is possible to sell a car without insurance. However, it is important to ensure you stay legally compliant during the selling process.
In this guide, we’ll clarify when it is and isn’t legal to sell an uninsured car, outline some of the challenges you may face, and show you how to overcome them.
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Do you need insurance to sell a car?
No, you don’t need insurance to sell your car. However, it is illegal to keep a car that is not insured, unless it is subject to a Statutory Off Road Notification (SORN) – and always kept on private land.
What happens to insurance when you sell a car?
Selling privately
You can technically sell your uninsured car privately, but this can present some challenges. Prospective buyers won’t be able to test drive the car on public roads, because even if they get temporary insurance, this won’t override the SORN.
Any test drives would need to take place on private land, which can be extremely tricky if space is limited.
A prospective buyer could be deterred if they can’t properly assess the car’s capabilities. However, if they’re still happy to buy the car, it must be insured, taxed, and hold a valid MOT certificate before they can drive it.
Alternatively, if the car doesn’t meet all these conditions, the buyer could arrange for it to be moved by a vehicle transportation service at the point of sale. In this case, they’ll need to keep the car on private property until it is fully roadworthy.
Selling to a dealer
Selling an uninsured car to a dealer is usually more straightforward than selling it privately.
Some dealers offer a collection service - and will arrange for the car to be transported at the point of the sale. However, this extra work will usually be factored into the price they offer, meaning you’ll be paid slightly less.
Can I sell an uninsured car to webuyanycar?
If your car is SORN or uninsured, we can still buy your car. However, to remain legally compliant during the selling process, it must be taxed, insured and transported (e.g. on a trailer) to your appointment, as it cannot be driven.
We don’t offer a vehicle collection service - and while our branches are on private property, they are open to the public.
This means road traffic laws still apply. Even if you arranged for the car to be transported to your appointment, you cannot legally bring an uninsured car onto the premises, because our branches have public access.
Should I cancel my insurance policy after selling my car?
Whether you should cancel your car's insurance after you sell it depends on your circumstances:
If you don't need to insure another car
If you don’t intend to buy or insure another car in the immediate future, it may be worth cancelling your current policy, as your insurer should refund you for the unused cover.
However, you may be charged an administration fee for cancelling during the term, which will be deducted from your refund.
If you need to insure a different car
Alternatively, if you plan to buy another car immediately, you may be able to transfer your existing policy to that vehicle as opposed to cancelling it. This will keep you covered whilst avoiding fees - and should also keep your no-claims discount intact.
Frequently Asked Questions
Yes, you can take out a temporary insurance policy for a car that doesn’t currently have insurance.
You don’t need an existing insurance policy to arrange temporary cover. However, it’s a legal requirement for any vehicle kept or used on public roads to have valid insurance.
If you plan to cancel your insurance but keep your car, you should make a SORN first. Just bear in mind that once a SORN is in place, the car can’t be legally driven or parked on public roads, until it is re-taxed, insured, and has a valid MOT certificate.
A car dealership could technically sell an uninsured car, if it is declared SORN and kept on their own private property. It would then be the buyer’s responsibility to make sure the car is taxed and insured before driving away.
However, this situation is unusual in practice, as any car that’s driven or parked on public roads must be insured by law. Without insurance, test drives and vehicle deliveries wouldn’t be possible.
Most dealerships use specialised motor trade insurance to cover them for deliveries and test drives for the cars they sell.
Yes, you’ll need to arrange insurance before you drive on public roads, even if you are simply travelling home.
Some dealerships offer ‘drive away’ insurance with the purchase of the car, which typically covers you for a few days. However, it’s worth double-checking this is included so you don’t find yourself on the wrong side of the law.