Auto insurance is required when you own a car. However, if you have sold the car, you may wonder how long you need to insure the car before you drop it from your auto insurance policy. This is a questions that we are often asked at Schaller & Thomas Family Insurance, serving the greater Peoria, AZ area. Here is what you need to know if you are selling a car and wonder about insurance.
Technically, once you have sold a car, you can drop it from your auto insurance policy. And it is strongly recommended that you do so immediately when you sell it to a dealership. However, if you have sold the car to a private party, it is recommended that you continue to carry coverage on the car until you file paperwork with the department of motor vehicles in the state of Arizona. You are required to file a release of liability with this entity within five days of selling the car. Until this is filed and approved by the department of motor vehicles, you can be held liable if the car is in an accident and the new buyer does not have auto insurance. This is the reason why it is recommended that you continue carrying insurance when sold to a private party. Once the paperwork is approved by the DMV, you can drop auto insurance immediately, as you are no longer liable for the automobile.
If you have questions about your current auto insurance policy, or are looking to purchase a new one, Schaller & Thomas Family Insurance, serving the greater Peoria, AZ area, would love to help you. Call us today for a free price quote or to schedule an appointment to talk about your insurance needs.