If you decide to cancel your policy, have a copy of the bill of sale ready when you contact your insurance company. This will show that the car is no longer in your name and that you are not legally required to have insurance. Depending on your state, you may also need to notify your DMV after canceling an insurance policy. Canceling your insurance will also cause an interruption in car insurance coverage, which may mean higher rates in the future.
Yes, you can cancel your car insurance after selling it once you've transferred the title to the new owner, completed the bill of sale, and filed a notice of exemption from liability to your state's department of motor vehicles, if your state requires it. This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation or exclusion that is expressly stated in any insurance policy. You could be held legally and financially responsible for any accident involving your car while you're selling it, which means that it's in your best interest to maintain your insurance. For years, GEICO has strived to make the process of buying and renewing insurance as simple as possible.
To avoid a break in coverage before buying another car, consider getting an auto insurance policy for people who are not homeowners. For example, if a prospective buyer takes the car to a test drive and damages it, your insurance can help pay for the damage. Most states require car owners and drivers to have liability insurance coverage, and some require additional coverage even for owners of cars who don't drive. If you're buying a new car, you can contact your insurance company to add your new car to your current car insurance policy.
