s2000 almost gone. Evo almost here.
wat a delightful feeling :)
one question i had, and i've found the answer on google is:
Once the Bill of Sale is notarized and the title is switched over to the buyer’s name, does this instantly render the car insurance invalid? Or do I immediately need to call the insurance company immediately to cancel insurance on the car? Is it true that the new owner also needs to show proof of insurance at the moment I give them the keys, or is that their own responsibility?
Couple of good response.
I believe that you should call right after the person leaves to cancel the car insurance…once they signed the title you want the insurance canceled asap in case they have an accident leaving your home…you could be at fault if you still have the insurance or they could try saying the car was not fully theirs since the insurance was in your name still on the car. Make them call the insurance company in front of you…offer them your phone…seeing as you know all the details about the car…it would make it easier for the insurance company questions to be answered. They do this at car dealerships all the time.
You need to retain a copy of the bill of sale with complete information on the buyer.
This proves the car was sold on X Date. You should not be responsible for a car after you sold it. And most insurance covers the driver first.
So if the buyer wrecks it 5 minutes after you sell it, its his problem not yours or your insurances.
The buyer does not need to show proof of insurance. And in many states, a bill of sale need not be notarized.
Your potential liability is that the buyer never registers it and then gets in a wreck. Thats not your fault and you nor your insurance company would be liable.
Call your insurance company as soon as its convienent and let them know the car was sold on X date.
Technically, if the buyer uses it to rob a bank before he registers it in his name, the cops would come looking for you.
You pull out the bill of sale give it to them and tell them what you remember and you dont have a problem.
If you said, “I sold it to some guy and dont have any proof, they might not rule you out for the robbery”
If you dont keep a bill of sale and dont cancel your insurance, its possible someone could claim you are liable. For instance, if the buyer wrecks it and causes property damage, he could say you let him borrow it and therefore your insurance is responsible.
Keeping a bill of sale with correct and complete buyer info including work, home and cell #s is your best bet. If they seem shady, get their drivers license # too.
http://www.autosinsurances.com/questions-about-selling-my-car/
Google is great.
