Ask an Agent
Have a question? We're here to help.
Ask an agent for free
Question

Should I cancel my policy if I sold my vehicle and won't be getting another car for a month?

I sold my car to get more money than I would on trade-in value, but the check from the buyer won't clear my bank for about 2 weeks or more and I can't buy a new car until that money is available. It doesn't make any sense to me to keep paying for insurance on a car I don't own any longer but my parents said that I should keep it active until I get a new car. What is the point?

Mar 9, 2016 Lincoln, NE

Answer
Author profile picture

The Zebra

The nation's leading independent insurance comparison site

The Zebra is an independent insurance advisor and quote comparison site with headquarters in Austin, Texas. Utilizing its real-time quote comparison …

Canceling your auto insurance when you sell a vehicle sounds like a good idea until you realize the potential pitfalls of doing so. While it may not make sense to maintain auto insurance when you no longer own a vehicle, consider the fact that you still have to have insurance to test drive a vehicle that you are thinking about purchasing. There is also the issue of losing your continuous insurance discount by cancelling your policy. If you do this then your rates will be substantially higher when you get a different vehicle and need coverage. If you will be purchasing another vehicle within a month or so then continuing to pay for your policy is a smart idea. If you will be without a vehicle for longer than a month, consider purchasing a non-owners insurance policy to maintain coverage between vehicles, retain your prior insurance discount, and stay covered while you are borrowing or test driving a vehicle.

Ask an Agent
Have a question? We're here to help.
Ask an agent for free

Insurance is complicated, but it doesn't have to be.

The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.

Step 1: Tell us a little about yourself

Choose an insurance product and enter your zip code to get started. No phone number required.

Step 2: Sip your coffee while we find the best quotes

Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.

Icon Fill Form

Step 3: Compare your quotes

Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.

Icon Agent

Step 4: Let our agents do the hard work for you

Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.

Compare insurance rates today!

Location pin icon
No junk mail. No spam calls. Free quotes.

Related Questions

Other people are also asking...

If I'm no longer driving my car in Georgia, do I have to carry insurance and registration on the car?

No, in Georgia you don't have to keep car insurance for a vehicle that you are no longer driving, but you will more than likely be required to cancel the vehicle's registration. Canceling your registration should not affect your ability to sell the vehicle, but just to be sure I would con…
Sep 27, 2016 Kennesaw, GA

Do I need to put everyone in my household on my policy?

It's usually recommended to add everyone who lives in the household on the same policy if it's likely they will be driving the insured car, and insurance companies generally require everyone in the household of driving age to be listed on the policy. But if the others in the household alr…
Aug 12, 2019 Miami, FL

If I cancel a policy less than 24 hours after starting it, will I get a refund?

The state of Florida requires that insurance companies refund at least 90% of the unearned premium paid by a customer if they receive a request to cancel. There are instances where a company may include the policy's fees within the first month so your refund can vary depending on which company…

Is it mandatory to list my adult child on my policy if they live in my home but will not drive my vehicle?

Insurance companies generally require that any person living in the household be listed on your policy regardless of driving status. If a member of your household won't be driving your vehicle then you can normally exclude them from coverage or have them listed as a non-driver. The reason is b…
Aug 1, 2017 Groveton, NH