Cancel your insurance after you junk your car, not before. Keep coverage active until the vehicle leaves your property. Once the tow truck drives away with your car, call your insurance company to cancel the policy. This protects you during the final period of ownership and avoids coverage gaps.
Why to wait until after:
- You’re liable for the car until it’s picked up
- Accidents or damage could occur before towing
- Theft is possible if the car sits waiting for pickup
- Comprehensive coverage protects against unexpected events
- Insurance may be required for the sale to complete legally
Steps to cancel properly:
- Wait until the junk car buyer takes the vehicle
- Get your receipt and confirm the sale is complete
- Call your insurance company or cancel online
- Provide the sale date and buyer information
- Request refund for unused premium
- Get cancellation confirmation in writing
Refunds for unused premium:
- Most insurers prorate refunds from cancellation date
- Refund amount depends on how much time remained
- Expect payment within 1 to 4 weeks
- Some policies have cancellation fees (check your terms)
If you have multiple vehicles on one policy, you’re removing a vehicle rather than canceling entirely. The process is similar, but your policy continues with remaining vehicles.
Timing the cancellation on the same day as pickup keeps things clean. You know exactly when your ownership ended, and you’re not paying for coverage you don’t need. Make sure you’ve also notified the DMV about the sale.
