Are you selling your car and wondering what to do about the insurance? The truth is that if your car is still drivable and registered, you must have a valid insurance policy. It’s only after you sell your car that you can cancel the policy. At Fearnow Insurance, our agents can help you cancel your old policy on your old car and help you get a new insurance policy for your new car.
What to Do with Your Insurance Policy While Selling Your Car
When you decide to sell your car, it’s important not to cancel your car insurance right away. All cars, if they are drivable and registered, must be insured. Not to mention, your car must have insurance if you plan to allow potential buyers to test drive it. If you plan to trade your old car into a dealership and get a new car, you’ll still need insurance for the drive to the dealership. However, you can reduce the amount of coverage on your old car to the state minimum, which could save you money.
The reason that you do not want to cancel your car insurance policy is because you’d still be responsible for the accident if your potential buyer crashed it on the test drive or you crashed it on the way to the dealership. Imagine this scenario, you’re selling your car privately and you have a potential buyer. They’ve asked to take it on a test drive. You hand them the keys, believing that they’re just going to drive it around the block. Instead, they take it out for a 30-minute test drive and get on the nearest highway where they are involved in a crash. If you don’t have any car insurance on the vehicle, you could be on the hook for the entire amount of the accident, including the other driver’s repair and medical bills. Not to mention, if you get into an accident without car insurance, you may be labeled a high-risk driver and have to pay extremely high premiums for your next car insurance policy.
How to Sell Your Car
Once you’ve collected the payment from the new owner of your car, sign the title and have the other person sign the title in the applicable spots. Write a receipt for the sale of the vehicle and make two copies. One copy will go to the new owner, and you’ll keep the other copy. Remove your plates from the back of the car, and make sure you have the name and address of the new owner.
What to Do with Your Insurance Policy After You Sell Your Car
Once you sell your car and the new owner has signed the title and driven away, you can easily cancel your old insurance policy by calling your insurance company and telling them that you have sold the vehicle. Some insurance companies may charge a cancellation fee, so it’s important to ask your agent about any fees for canceling an insurance policy early. If you haven’t purchased another car by the time you sell your old car, canceling your insurance policy is the only thing you need to do after you sell the vehicle.
If you have purchased another vehicle by trading your old car into a dealership, you can simply ask your insurance company to transfer your old policy to your new car. This avoids any cancellation fees and ensures that you are covered in the event of an accident. Not to mention, you may not be able to register your new car until to have an insurance policy.
Getting Auto Insurance with Fearnow Insurance in Florida
Here at Fearnow Insurance in Florida, we can help make sure you have the right insurance policies for your vehicles, no matter where you are at in the ownership process. If you are selling a vehicle you no longer drive, we can help you make sure your car is still covered while you search for a buyer. If you’ve purchased a new car or are thinking about purchasing a new car, we can provide quotes and help you get a new policy. If you’ve sold your vehicle and traded in your old car at the dealership, we can transfer your old policy to your new vehicle so that you do not have gaps in your car insurance.
To learn more about how to handle your car insurance when you’re selling your vehicle and to get a new policy for your new car, give our Florida insurance agents a call at (813) 689-8878.