How do I cancel my car insurance after I sell my car?

I'm selling my car and want to cancel my insurance. When is a good time to cancel it? How do I do it?

Answer
Hopefully, you get top dollar for your car! But hold off on canceling your car insurance for a bit.
When you sell your car, you should wait to cancel your car insurance until after you transfer the title over. If you cancel your insurance before that, you may be liable for any accidents that the new owner gets into before the title has transferred.
To cancel your insurance once the title is transferred, call your car insurance company. They can finalize the cancellation and provide any additional details. If you cancel mid-term, be aware that some insurance companies may charge a fee. Others will give you a refund based on a prorated amount.
If you plan on getting a new car, try to purchase the vehicle within 30 days of selling your vehicle and canceling your insurance. A lapse greater than 30 days can impact your car insurance rates, so keeping it within that time frame can get you a discount.
When you purchase your new car, the timing is great to shop new car insurance rates. Use the Jerry app to compare quotes from dozens of insurers so you can get the best rate for your car insurance.
Emily Maracle
Answered on Oct 19, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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