So you’ve finally decided to let go of that old junk car sitting in your driveway. Maybe it’s been gathering dust or refusing to start or costing you too much in repairs. Good call. But before you officially part ways with your clunker, there’s one important thing you need to take care of — your car insurance.
At Boss Cash Cars we often get asked “Do I need to cancel my car insurance after selling or junking my car?” The simple answer is yes. And here’s why it matters.
Why You Should Cancel Car Insurance After Selling a Car
Once you’ve sold or junked your vehicle you’re no longer responsible for it but if you don’t cancel your car insurance your insurance company has no way of knowing that. That means you could end up paying for a policy you no longer need or worse being held responsible if something happens to the car after it leaves your hands.
Whether you sell it privately or trade it in or junk it through a service like Boss Cash Cars it’s always a good idea to contact your insurance company right away and cancel your policy on that vehicle.
What Happens If You Forget to Cancel?
If you forget to cancel your car insurance after selling your car a few things can happen:
- You’ll keep getting charged monthly premiums.
- Your insurance provider might report a lapse if your policy is automatically canceled for non-payment.
- In rare cases if the car ends up involved in an accident before the new owner transfers it you could be dragged into an unnecessary headache.
To avoid wasting money or dealing with paperwork later it’s best to handle your insurance as soon as you junk your car.
How to Cancel Car Insurance After Selling or Junking a Car
Good news — it’s easy to cancel car insurance once you’ve sold your car. Here’s what you need to do:
1️⃣ Contact Your Insurance Company
Call or email your insurance agent to let them know you’ve sold or junked your car.
2️⃣ Provide Proof of Sale or Junking
Some companies may ask for a bill of sale or a junk receipt from Boss Cash Cars to confirm the transaction.
3️⃣ Remove the Vehicle from Your Policy
If you have multiple cars on your policy make sure only the sold or junked vehicle is removed.
4️⃣ Ask About Refunds
If you paid your premium in advance you might be eligible for a refund for the unused portion.
5️⃣ Get a Confirmation Email or Letter
Always ask for written confirmation that your policy has been canceled. It’s good to have for your records.
What About License Plates and DMV Notification?
Once you junk your car don’t forget to:
- Remove your license plates. You may need to return them to the DMV in some states.
- Notify your local DMV that the car has been sold or junked or no longer in use.
This step combined with your insurance cancellation makes sure you’re fully cleared of any legal or financial responsibility tied to that car.
Let Boss Cash Cars Handle the Hard Part
At Boss Cash Cars we make selling or junking your old car quick and hassle-free. We’ll take care of the paperwork pay you on the spot and provide a bill of sale so you can cancel your car insurance right away with no confusion.
Got an old car you’re ready to get rid of? Give us a call. We’ll make the process smooth simple and worth your while.
