Selling your vehicle in British Columbia? It’s not just about the handshake and the handover. If you’re not careful, you could still be on the hook for car insurance issues long after the car is out of your driveway. At King Insurance, we’re here to help you sell your car with confidence while making sure you have the right coverage every step of the way.
Here’s a practical step-by-step guide based on ICBC requirements, with key insights into what it means for your insurance coverage.
1. Confirm You’re the Registered Owner
Before you list your vehicle, make sure the original registration is in your name. You’ll need to provide the buyer with a signed vehicle registration form (APV250) to complete the sale.
If you’re not listed as the registered owner, or the legal owner has passed away, speak with an Autoplan broker before proceeding. Otherwise, you may face delays—or worse, a voided sale.
Insurance note: You cannot cancel or transfer car insurance if you’re not the registered owner. Make sure this is cleared up before taking any further steps.
2. Prepare the Vehicle and Plan for Test Drives
Give potential buyers a reason to trust you. Gather maintenance records, receipts for any upgrades, and consider getting a vehicle history report. A clean vehicle and an optional pre-purchase inspection also help build credibility.
If the vehicle is currently unlicensed or uninsured, you’ll need a Temporary Operation Permit from an Autoplan broker to allow test drives legally.
Insurance note: This permit includes basic coverage, but if a potential buyer takes a drive and causes damage or injury, it’s the permit holder who could be held liable. Make sure you’re listed as the permit holder, not the buyer.
3. Advertise Safely and Effectively
Post your vehicle on reputable online marketplaces and local community boards. A “For Sale” sign on the vehicle still works—especially if it’s parked in a high-traffic area.
When meeting with potential buyers, always bring someone with you and arrange the meeting in a public place if possible.
Insurance note: Until the sale is official and the vehicle is re-registered, you’re still liable for what happens to the vehicle. Don’t hand over the keys without signed documentation. Practicing safe driving and responsible sales habits can protect you and the buyer alike.
4. Finalize the Sale Securely
We recommend accepting cash or a verified bank draft—not personal cheques or e-transfers. Fraudulent payments are not uncommon.
After payment is received, complete and sign the Transfer/Tax Form (APV9T). This form requires original signatures from both parties on all four pages. Remove your licence plates and hand over the bottom half of the APV250 (the registration portion) to the buyer.
Insurance note: Go with the buyer to an Autoplan broker to officially transfer ownership and cancel or transfer your auto insurance. This is the best way to protect yourself from future liability.
5. Don’t Forget to Cancel or Transfer Your Auto Insurance
Once the sale is complete, visit your Autoplan broker to cancel the existing policy or transfer it to another vehicle.
Insurance note: If you’re transferring the policy to a new vehicle, both the old and new odometer readings are required to qualify for usage-based discounts. If you don’t cancel the policy, you’re still technically insuring a vehicle you no longer own—and that’s a risk you don’t want.
6. Understand the 10-Day Licence Plate Rule
BC law allows you to use the licence plates from your old vehicle on your new one for up to 10 days, but only if:
- You’ve sold or disposed of the old vehicle
- Both vehicles are the same type (e.g., passenger cars)
- The new vehicle is registered in BC or from a licensed BC auto dealer
- Neither vehicle is leased
During this grace period, you must keep the following in the vehicle:
- A signed Transfer/Tax Form
- The registration for the new vehicle
- Your old auto insurance papers
- Proof of sale of your previous vehicle
Insurance note: This grace period does not apply to vehicles with “restricted” or “prorate” plates. If your situation doesn’t meet all the conditions, get a Temporary Operation Permit instead.
7. Return Licence Plates You’re Not Using
ICBC plates remain the property of ICBC. If you’re not transferring them to another vehicle, they must be returned to an Autoplan broker or ICBC.
Insurance note: Never sell or lend your plates. Misuse can result in fines or denial of future claims. And if someone drives with your plate and causes a crash, you may still be liable.
8. What If It’s a Court-Ordered Transfer?
In cases where a court mandates the transfer of a vehicle (for example, due to divorce or estate matters), the court order must include:
- Authorization for ICBC to transfer ownership without the owner’s signature
- Full vehicle details (make, model, VIN)
- The recipient’s name
Insurance note: The new registered owner must visit an Autoplan broker to finalize the transfer and secure new insurance coverage. Until then, the vehicle may still be covered under the prior owner’s policy.
Don’t Forget About Travel Insurance and Home Insurance Needs
Selling a car is a great time to revisit all your insurance coverage, including insurance products like home insurance and travel insurance. At King Insurance, we help clients not only with car insurance and vehicle registration needs, but also with home insurance and travel insurance for year-round protection. Whether you’re planning a trip or protecting your family home, we’re here to make sure you have the right insurance coverage in place.
Protect Yourself, Even After the Sale
The bottom line? Selling a vehicle doesn’t automatically end your liability. Until you remove your name from the registration and cancel or transfer your insurance, you could be held responsible for crashes, tickets, or insurance fraud tied to that vehicle.
For peace of mind, we always recommend completing the transaction at an Autoplan insurance broker like us. It only takes a few minutes, and it ensures both parties are protected.
Located at the northwest corner of Marine Drive and Main Street, King Insurance proudly serves not only the South Vancouver communities of Marpole, Sunset, Oakridge, Victoria–Fraserview, and nearby areas like Marine Gateway and Marine Landing, but also clients across Richmond and the entire Lower Mainland.
Ka Hing Cheung is proud to work in the insurance company industry, helping people manage risk and protect what matters most. Ka Hing is committed to ongoing learning and enjoys helping clients find the right coverage at the best available rate, while making sure they understand their options clearly.