Handling Tax and Insurance When Selling Your Car
May 9, 2026 Sell My Car Derby
Do not forget your tax and insurance.
Selling a vehicle means you also need to tie up loose ends with the DVLA and your insurance provider. Doing this correctly ensures you get any money back that you are owed.
Dealing With Road Tax
Road tax does not transfer to the new owner anymore. You have to tell the DVLA the moment you sell the car.
- The Process: You can notify them online using the reference number on your V5C logbook.
- Getting Paid: The DVLA will automatically cancel your direct debit or send you a cheque for any full months of tax remaining.
Sorting Your Insurance
You must keep the car insured until the exact moment it is sold. If it is parked on a public road, insurance is a legal requirement.
- Moving Policies: If you are buying another car, your insurer can usually swap the policy over to the new vehicle for a small fee.
- Cancelling: If you are not replacing the car, call your provider to cancel. They will usually refund you for the remaining months, minus an administration charge.
We Help You Sort It
When our Derby team buys your car, we guide you through the DVLA online notification right there on the spot, so your tax refund is processed instantly.
Ready to sell your car?
Enter your registration below to get a free, no-obligation valuation from our local Derby team.