![]() This is also a smart step if you want to learn more about ways you can save on your coverage. If you prefer, you can visit the local office of the insurance company to cancel your policy in person. You should also plan to follow up with an email or a letter. How to Cancel Your Auto InsuranceĪ recommends calling your insurance company and letting the agent know you plan to cancel. You just need to provide your insurance company with the vehicle identification number and the date you want the policy to begin. You can save time by simply adding the new car to your existing policy, especially if you are happy with the cost and customer service. ![]() You can drop down to minimum coverage and keep your policy active if you need time to shop for a new vehicle, according to Car Insurance Comparison. For example, you might want to retain your loyalty discount if you've been with your existing auto insurance provider for several years. You should also consider whether it would make more financial sense to keep your existing auto insurance policy if you plan to buy a new car after selling your old one. Most insurance companies do not charge a cancellation fee, though a few charge $50 or $100. You should also check with the DMV to see if your state has any other regulations to follow when selling a vehicle.Īfter this step, you can effectively cancel your auto insurance. Doing so protects you from legal penalties in case the new owner fails to register your car in his or her name. According to The Balance, you have to visit the DMV in your state and file a Notice of Release of Liability form. The price of the car and payment methodĮven once you finish the transaction, sign the receipt, and sell your car to its new owner, you shouldn't cancel coverage yet.Any conditions of the sale, such as repairs to be made, as is condition, or warranty.The driver's license number of both parties.The vehicle identification number (VIN).To complete the process of selling your car, you need to have a final bill of sale. Drivers who have more than one conviction for driving without insurance can even serve six months in jail. You also have to get costly SR-22 insurance for three years. You must appear in court, and the Department of Motor Vehicles (DMV) will suspend your driver's license and registration. ![]() The penalties for this type of ticket vary by state.įor example, California drivers who operate their vehicle without insurance could receive a misdemeanor conviction that carries fines, impoundment of your car, towing fees, and storage fees. You could end up receiving a ticket for driving without insurance. If you bring the car to potential buyers, you'll need to be insured while you drive it there. For one thing, people who come see the car will want to take it for a test drive. Timing of Policy CancellationĮven though you might not plan to drive the vehicle you're selling, you should keep it insured until you complete the sales transaction. If you no longer need to rely on a motor vehicle for transportation - if you're moving to an urban area, for example - you can cancel your car insurance policy as soon as your vehicle sale goes through. If you plan to buy a new car within the next few weeks or months, however, it makes more financial sense to keep your policy active. Are you wondering when to cancel insurance after selling a car? In some instances, you might want to cancel your insurance right away to avoid paying the monthly cost. ![]()
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