Why do I have to keep insurance on my old car if I'm not using it?
I just bought a new car and will be giving my son the old car. When I talked to my agent about dropping my coverage, he said that I couldn't until the car is in my son's name. Is that true?
It really has more to do with the fact that you still have the vehicle registered in your name. New Jersey monitors whether or not vehicles registered in the state are also insured. If you drop the insurance coverage, the state could suspend your license. If you aren't wanting to insure the vehicle anymore, I would recommend contacting your local registration office about returning the vehicle tags. That should clear you up to drop the vehicle from your policy without any penalty. From there, your son would need to insure the vehicle and then register it afterwards.