What Happens to Car Insurance When You Sell a Car? (2023 Guide)

Car insurance can be confusing and overwhelming, especially when you’re selling your car. What happens to car insurance when you sell a car? This 2023 guide provides answers to this pressing question.

When you sell your car, the car insurance policy for that vehicle will be canceled, and any unused premium will be refunded to you. If you’re replacing your old car with a new one, you’ll need to purchase a new car insurance policy for the new car.

It’s important to note that you should always have insurance coverage for your car, even if it’s not being driven. If your car is parked on the street, it could still be damaged or stolen, and you’ll want to be protected.

Additionally, if you’re selling your car to a private party, you should transfer the car insurance policy to the new owner. This can prevent any confusion or liability issues that could arise if the new owner gets in an accident before they’re able to purchase their own car insurance policy.

When selling a car, it’s important to take the time to properly cancel the car insurance policy and transfer it to the new owner if necessary. This ensures that you’re protected and that the new owner is able to get behind the wheel of their new car with the right insurance coverage.

In conclusion, knowing what happens to car insurance when you sell a car is essential for protecting yourself and making sure the new owner of your car is properly insured. Don’t take any chances when it comes to car insurance – make sure you have the right coverage before you hit the road.