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Planning on selling old car do I still need insurance on it

If I am replacing a vehicle but holding onto the old one to sell it, do I have to insure both cars? Is there a grace period to insure both or under the law, or must I insure both from the day I bring home the new one?

May 19, 2018 Minneapolis, MN

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Ava Lynch

Senior Analyst

  • Licensed Insurance Agent — Property and Casualty

Ava joined The Zebra as a writer and licensed insurance agent in 2016. She now works as a senior analyst, providing insights and data analysis as one…

There's a couple of things to look at here. Any grace period would depend on the exact policy details of your current policy. While most do have grace periods, it really depends on your current company. If there is a grace period, it would apply to the new car as long as you keep your initial car insured. In most cases, whatever coverage you have on your current vehicle would transfer to your new vehicle. So, if your old vehicle is liability only, your new car would only have that coverage. Which, in the event of an at-fault accident, would leave you on the hook for all damages to your vehicle. If this is the case, I wouldn't rely on coverage for the other vehicle. Overall, I would still recommend getting your new vehicle added to your current car insurance company ASAP to avoid any issues going forward. The second thing I would think about is if you're going to allow test drives for your vehicle while you're in the process of selling it. If you are, I would keep your car insurance until the new owner has insured the vehicle and you've transferred the title over. Most car insurance policies follow the car, not the driver. So, if someone was test driving your vehicle and were to get into an accident, your insurance would take over first. Best of luck, and if you have any other questions don't hesitate to ask.

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