Keep your auto insurance active until the moment the title transfers to the new owner. Once they take possession and sign the title, your insurable interest ends and you can cancel the policy that day.
Best practice
- Do not cancel before the buyer arrives
- Get the buyer's name and address for your records
- Call your insurer the same day the sale completes
- Request a written cancellation confirmation
- Confirm pro-rated refund of unused premium
Frequently asked questions
When does my insurance stop covering a sold vehicle?
When ownership legally transfers — typically when the title is signed over.
Do I get money back when I cancel?
Yes, the unused portion of your premium is refunded pro-rata.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.