Having car insurance is one of the criteria for owning a car in most, if not all, U.S. states. It is also one of the criteria for selling or buying a car. What happens after you sell your vehicle? Here are important points to know about car insurance after selling the car.
Preparing to Sell Your Car
Once you’ve decided to sell your car, create a plan that includes insurance considerations, such as reducing the policy coverage to your state’s minimum requirements. You can cancel your car insurance after selling the car or keep your policy in place if you will be replacing it with a new vehicle. Remember, it’s important to maintain insurance for your vehicle while it’s registered in your name and if you drive it or let others test-drive it.
Keep in mind; you will be responsible for damage if the potential buyer crashes while test-driving your car. Never cancel your auto policy if you still have possession of and plan to drive the car.
Trading your old car for a new one still requires insurance to drive your new car off the lot. So do not plan on canceling the policy.
Selling Your Car
The process of selling a car independently simply involves collecting payment and signing the title over to the new owner. You should also generate receipts for the buyer and yourself. Finally, you should remove the license plates and follow what your state law requires to do with them. Document the buyer’s name and contact information for any future communication regarding the vehicle or the transaction.
After Selling the Car
If you are NOT buying a new car right away you can remove the sold vehicle or cancel the policy for your old car once you’ve signed the title over to the new owner.
When you need auto insurance in Camarillo, CA, contact our reputable agents at Chambers & Company Insurance Brokers for help finding a policy that serves your needs. We are ready to discuss your options. Reach out to us today!