You decided to sell your car. Maybe it’s time to upgrade, or you are moving and no longer need it, or perhaps you are selling your car because you need the extra money. No matter the reason, you will want to contact your insurance company immediately after selling it. Continue reading to learn the important steps you need to take with your insurance company after selling your car.
Canceling Car Insurance After Selling Car
If you are planning to sell your car, you may need to cancel your car insurance policy. You don’t want to be held responsible for a vehicle you no longer own. If you buy another car immediately, you should notify your insurance of the vehicle change, and they will update your policy. You can also potentially avoid paying a cancellation fee depending on your provider.
If you don’t purchase another vehicle right away, there may be gaps in your coverage. Contact your car insurance provider to see what options you have to keep your policy active.
How To Cancel Car Insurance After Selling Car
It is simple to cancel auto insurance after selling your car. Every insurance company has a different process for canceling your car insurance, but this is essentially the process:
- Call your insurance company
- Tell them that you sold your car
- Ask about a cancellation fee
- If you buy a new car, you can do a vehicle replacement. Simply provide the make, model, vin number, and other requested information to your insurance provider.
- If you don’t have a new car, prepare your cancellation request
- When you write the request, include name, policy number, date, and address to send any refunds
What Other Steps Should I Take After Selling My Car?
After you sign the bill of sale, complete a Notice of Release and Liability with your state’s DMV. This tells the state who purchased the vehicle in case they never transfer the vehicle registration. You have five days to complete this step and the new owner has 10 days. After the form is filed, you can cancel your car insurance.
Be sure to follow these steps to make sure you are no longer liable for the vehicle:
- Remove the vehicle plates. They belong to you.
- Write a receipt and make two copies.
- Give the new owner the car’s handbook, all copies of the keys, service history, and any maintenance receipts.
- Sign the car title
- Keep a note of the buyer’s name and address.
Buying and selling a car is an exciting time. Make sure you are fully protected by understanding how to cancel auto insurance after selling your car.
If you just sold your car and are shopping around for cheap car insurance, call Freeway. Freeway Insurance offers affordable car insurance for all drivers. Call (800) 777-5620 to get a free car insurance quote. You can also request your free auto insurance quote online.