When selling your old car, one thing that races through your mind is the transferability of your extended car warranty cover. After all, it increases the price and demand for your car. Liza Harmse, Head of Risk Finance at Mutual & Federal Risk Financing (MFRF), gets you up to speed with what you need to know about transferring your motor warranty policy to a new owner.

1. There is a possibility that your policy may not be transferable

Most extended warranties have terms and conditions on the transfer of the warranty to a new owner. If the warranty cannot be transferred, the owner should contact the insurer/underwriter or administrator and notify them of the sale so that they can process the cancellation and refund, if possible.

2. Honesty is key

Make sure you complete and provide all the documents required to process the transfer. If the terms and conditions state that the vehicle may only be transferred in a “private sale”, provide clear facts so that you don’t mislead the administrator, as this can be seen as fraud. Rather cancel the policy with the administrator and request a refund.

3.The seller or buyer pays for the inspection of the vehicle

While there normally isn’t a fee, certain companies may request an inspection before the transfer at the current or new owner’s cost.

Motor policy is a product distributed by Motorvaps, an entity Within the MFRF stable. More information on Motorvaps and their products can be found at www.motorvaps.co.za.

Protect your most expensive assets and get motor warranty cover.

Until next time,
The MoneyShop.co.za Team