When to Cancel

I sold my car, when should I cancel the insurance?

Once you have made the decision to sell your car, you may have some questions as to when to cancel your insurance. Choosing the wrong time to request a cancellation can lead to penalties. You may not plan on owning the vehicle for much longer, but prematurely requesting your company to terminate your car insurance policy can land you in hot water!

If the vehicle is operable, by law, you may be required to carry the minimum requirements of insurance for the vehicle. Even if you stop driving the car for personal use, in order to afford potential buyers the option to test drive the car, the car needs to have valid plates, and everything must be up to date. This includes your insurance.

When you finally sell or are no longer in ownership of this vehicle, in most states you must notify DMV before contacting your insurer to let them know that the ownership shifted to elsewhere. DMV won’t contact your insurer on your behalf. Also important to note, if insurance is cancelled prematurely, DMV’s can charge you a fine for owning an uninsured vehicle.
If you have any questions about when you should cancel your auto policy contact your agent for advice.

This article provides generic information only, for specific coverage questions on your policy please contact your Bouvier Agent at 860.232.4491 or www.binsurance.com.