How do I handle insurance etc. when selling a vehicle by owner?

How do I handle insurance etc. when selling a vehicle by owner?

I live in Michigan and the buyer is coming from Indiana. Should I cancel my auto insurance before the buyer leaves with the vehicle? What if the buyer dosn'-t have insurance for it yet (and can'-t get it today, because it is Saturday) and asks me to wait till Monday to cancel my policy on the vehicle? What about registration and sales tax?

frchuck

The minute you sign the bill of sale, the car is no longer insured.You would cancell your insurance as soon as it is sold ( next working day) The buyer is resposnible to get his own insurance. The buyer is responsbile to title, register and pay the sales tax

zepper0

NEVER EVER cover strangers on your insurance (even close relatives and friends are very risky)!!! Your tag should come off and your insurance be cancelled before the car goes anywhere. He needs to provide current proof of insurance (most policies provide for temporary coverage of new vehicles) or NO SALE.Any other way and you're likely to take it in the shorts.

sunpekes

Sounds fishy to me. No on letting the buyer leave with your insurance in effect.You need to remove responsibility from the car and the papers need to be notarized befor you release the car. The notary can help with paperwork if you can find one. There are a few in the phone book who are private agents and work out of their homes.

Ask

insurance

Popular Q&A

How much is insurance for a 2008 Nissan GTR?
$4200 a year seems reasonable amount, but the rates could change depending how much you drive, your zipcode (big or small city), your driving record, where the vehicle is kept.http://www.compareautoinsurance.com/how-…Source(s):AUDI RS4 RULES!!!

How can I become a licenced insurance agent in California?
I'm surprised that you've been working in the industry for almost two years, and don't understand that you "get your license" by passing a basic competency test given by the state.The only "advantage" of having the license, is the possibility of being promoted and taking more responsibility...

CAN I HIRE LAWYER / LEGAL HELP ADVISOR in AUTO ACCIDENT CLAIM IN MONTREAL /QUEBEC ?
I recommend an online insurance quote. It's free and quick to do. http://www.simpleautoquotes.com/Auto-Insurance.htmlGood Luck.

I am looking for a late model used car....?
If you want to save gas go for a honda civic. I have a civic right now and it gives me over 32+ mpg.Those cars will last over 250,000 miles with no problems.If you can find a 92 and up civic ex with 150k and nothing is wrong. You should pay no more then $1500 for it. I think you can find a...

AUTO INSURANCE AND CREDIT REPORTS, What does one have to do with the other?
You are correct, many insurance companies are indeed checking credit reports and refusing people, or charging more for those whose credit isn't good.Personally, I think this practice should be outlawed. I don't believe that bad credit makes someone more likely to file a claim, or a fraudulent...