CAR-BUYING QUESTIONS
What happens to my old car's insurance when I trade it in?
Your insurance does not automatically end when you trade in a car. Call your insurer to add the new vehicle and remove the old one, ideally on the day of the trade so there is no gap. You may get a refund for unused premium on the old car. If you financed the old car, confirm the dealer paid off the loan, and keep proof of the payoff. Ask your insurer whether coverage limits should change for the new car.
General information, not legal or financial advice; rules vary by state and lender.Related questions
- What happens to my old loan after I trade in my car?
- When is the best time to trade in or sell my car?
- Can I trade in two cars at once?
- Why does insurance cost more for some cars than others?
- What affects my car's trade-in value?
- Will an accident on my car's history report lower my trade-in value?
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