What happens to my remaining registration or CTP insurance when I scrap my car — do I get a refund?
Short answer: In most Australian states, you can claim a pro-rata refund for the unused portion of both vehicle registration and CTP (compulsory third party) insurance once you formally cancel registration — this doesn't happen automatically just because you've scrapped the car, so you need to actively lodge the cancellation and refund request with your state transport authority.
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List Free →Refunds aren’t automatic
Simply scrapping or selling your car doesn’t trigger a refund by itself — the refund process is tied to formally cancelling registration, which is a step you need to actively take, not something that happens in the background.
What’s generally refundable
Most states refund the unused, pro-rata portion of both registration fees and CTP insurance premiums once cancellation is processed, though exact rules, minimum periods, and whether any admin fee applies vary by state.
Practical timing
Cancel registration as soon as possible after the vehicle is gone — the sooner you cancel, the more of the unused period you’re likely to recover, since refunds are calculated from the cancellation date forward.
How ScrapTrade Makes This Easier
While ScrapTrade handles connecting you with a buyer, don’t forget this separate step with your state authority — it’s money you’re otherwise leaving on the table.
Ready to scrap your vehicle without the paperwork headaches? ScrapTrade connects verified buyers and sellers with escrow-protected payments and transparent weighing.
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