When can I cancel my insurance?

[dmartin_egroup]

When I sell my antique car or truck, when will it be OK to cancel my insurance policy for that vehicle?  I may not know who has the vehicle after I sell it.  When is it no longer my responsibility?  Thanks for any knowledgable replies!

[Veemoney]

You can cancel anytime with most companies. Just let your insurer (agent) know when you sold it. You may receive credit for a portion of the term back by check with most companies based on the terms of the policy.    

[T120]

When I've sold a vehicle privately, I've retained my copy of the bill of sale...The bill of sale, containing date, a full description of the vehicle, basically including the serial number,mileage,full price, accepted without warranty, (the new owner having inspected and accepted the condition of the vehicle at the time of the sale),signed by both the seller and purchaser along with both the seller's and buyer's drivers licence ID numbers.... The vehicle is still registered in the seller's name until the new owner completes   the registration of the vehicle in their name with DMV.

[Veemoney]

I was addressing the immediate question but T120 brings up a good standard practice that goes along with canceling your insurance when selling a vehicle. I also create a 'Bill of Sale" document along the same guidelines as he mentioned above. It can be on plain paper or are available for download and serves to document the transaction. Make two copies so buyer and seller each have one. Anytime I ask for a signature or give one I.D.s should be provided.

 

Say for example although you signed the title and hopefully dated it there are many cases where a buyer does not register the title immediately into their name or worse off resells it with the open title to another buyer. Although you have signed the title over during the sale it was never re-registered so without a bill of sale there is no document showing the sale with signatures of the buyer and seller at the time you sold it. Now say the car ends up is some kind of trouble and possibly has some fictitious plates on it since it wasn't registered and the last owner the DMV shows is you.

 

Hope this helps and kudos to T120 for bringing it up.

[TodFitch]

My state has a form that the seller should send to the DMV saying they have sold the vehicle and who the buyer is. I don’t see any reason to insure the car after that form has been filed. If the buyer decides not to do the paperwork to transfer or register it that is their problem after I file that form.

[DJ194950]

Tod is from calif. and it is required to fill out the form he mentions and  also make yourself a copy or two.

 

The state sometimes loses or misplaces? these.  If someone does anything against the law including a parking ticket it will get back to you unless you can prove you sold it. Sure also helps to say to whom it was sold.

 

Problem happened to a friend and also me. He lied to the state and had sent in the form and had his word taken. Myself -my old cheapie local driver type car ran but was due for problems not worth fixin soon sold I sold it Cheap!

 

After the car racked up several park tickets (I believe they abandoned it. Had copies and even had copied the buyers drivers license. Set copies of the form and license to the company trying to collect from me. Never heard anymore!

 

DJ also in Ca.

[Merle Coggins]

16 hours ago, TodFitch said:

My state has a form that the seller should send to the DMV saying they have sold the vehicle and who the buyer is. I don’t see any reason to insure the car after that form has been filed. If the buyer decides not to do the paperwork to transfer or register it that is their problem after I file that form.

 

Wisconsin requires that now too. 

[Plymouthy Adams]

this form helps them track down delinquent tax payers...☺️

[Dan Hiebert]

Insurance companies and State motor vehicle regulations are often different.  And every State is different, as well.  Best thing to do is to (shudder) call your local DMV office for your State's requirements, and your insurance provider for theirs.  You may still have to force common sense onto whomever you talk to, though.  But, the State cannot force you to have insurance on a car you don't own, nor can your provider, regardless of the State you live in, or the provider you use.   

[T120]

I see no reason to continue insuring a vehicle that a person no longer owns.I wouldn't recommend selling a vehicle for cash and a hand shake without paperwork.  The  seller of a vehicle should retain a copy of a dated bill of sale with the ID and signature of the buyer. If something happens after the sale with the vehicle  involved and there is a knock at the door, it helps to be able produce a record of the transaction....?