Is automobile insurance transferable?

 After selling your automobile, you may maintain your insurance but must make changes. An additional vehicle may be added to an existing policy without much hassle if you are in the market for or have just purchased a new car. When adding a vehicle to a current policy, you'll likely be asked for the vehicle identification number (VIN), manufacturer, and lienholder (if applicable). You should know that your rate might fluctuate depending on the specifics of your new vehicle.

Non-owner insurance might be a useful interim solution if you've sold your old automobile but have yet to buy a new one. You won't have to worry about your insurance coverage lapsing if you take a trip in a rental car or borrow a friend's vehicle.

If I sell my automobile, can I get a refund for my auto insurance premiums?

After selling your automobile and signing over the title to the buyer, completing the bill of sale, and filing a Notice of Release of Responsibility with the DMV (if necessary), you may terminate your auto insurance policy. Legal consequences, such as penalties or a license suspension, may result from the premature cancellation of your coverage.

Your coverage will be interrupted once you cancel. If you won't be driving, this isn't an issue. A coverage gap might increase your premiums when you seek new insurance after buying a vehicle. Get a non-owner automobile insurance policy to avoid coverage gaps before you acquire a new car.

Have the bill of sale available when you call your insurance provider to terminate your coverage. This will prove that you no longer own the automobile and are thus exempt from maintaining its insurance. After canceling your insurance, you'll also have to let your state's department of motor vehicles know.