If you decide to cancel your policy, have a copy of the bill of sale ready when you contact your insurance company. This will show that the car is no longer in your name and that you are not legally required to have insurance. Depending on your state, you may also need to notify your DMV after canceling an insurance policy. Canceling your insurance will also cause an interruption in car insurance coverage, which may mean higher rates in the future.
Yes, you can cancel your car insurance after selling it once you've transferred the title to the new owner, completed the bill of sale, and filed a notice of exemption from liability to your state's department of motor vehicles, if your state requires it. Increases in auto insurance rates are often related to increases in the policyholder's insurance risk. However, another reason why Progressive might increase rates after 6 months is that insurance costs across the market have increased over time. Progressive charges a cancellation fee of 10% of the premium or a fixed rate in some states, although customers in other states don't have to pay a fee to cancel their auto insurance coverage midway through the policy.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. The amount you have to pay to cancel Progressive insurance coverage depends on a few factors, such as the state laws where you live, the term of the policy, and how often you pay the premium. Most states require car owners and drivers to have liability insurance coverage, and some require additional coverage even for owners of cars who don't drive. If you're a new customer of Progressive, you'll see your car insurance premium increase after the first 6-month policy period if you file a claim or if traffic violations are added to your driving record during that time.
If you're buying a new car, you can contact your insurance company to add your new car to your current car insurance policy. Recently, the Spokane County District Attorney's Office accused Jennifer Pond, of Spokane Valley, of filing a false claim for insurance purposes following a CIU investigation. To avoid an interruption in coverage before buying another car, consider getting an auto insurance policy for people who are not homeowners. You could be held legally and financially responsible for any accident involving your car while you're selling it, which means that it's in your best interest to maintain your insurance.
For example, if a prospective buyer takes the car to a test drive and damages it, your insurance can help pay for the damage. To cancel a Progressive insurance policy, call (86) 416-2003 to speak with a customer service representative and make arrangements for the cancellation to take effect immediately or at a future date.