Coverage timing on a vehicle sale matters. Drop too early and you're driving uninsured to the buyer's house. Keep coverage too long and you're paying for someone else's car.
Cancel the day the title transfers
Once you sign over the title and the buyer takes possession, your insurable interest ends. Notify your carrier the same day.
Get a written cancellation confirmation
Mid-term cancellations should generate a written confirmation and any pro-rated refund.
Frequently asked questions
When does my insurance stop covering a sold car?
When ownership transfers — typically when you sign the title over.
Do I get a refund for unused premium?
Yes, pro-rated less any short-rate penalty (rare for vehicle sales).
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.