Can I Remove a Vehicle From My Insurance Policy?

Have you recently sold your car? If so, or if you lost it in an accident that was a total loss, you’ll need to take it off your auto insurance policy.

Maybe you want to buy another car insurance policy. If so, you’ll need to set up insurance with another company.

But what if you don’t get another car insurance policy? Is taking a car off of your insurance policy a bad idea? Don’t worry, we’re here to help.

Before you sell your car, you should cancel your insurance. Our guide tells you when to do this, how to compare auto insurance, and how to cancel your insurance for free.

Before you drop a car from your auto insurance, use the free online quote tool above to get quotes from several companies near you.

Having the right auto insurance coverage is crucial for protecting yourself financially in the event of an accident or other incident involving your vehicle However, your insurance needs can change over time as your circumstances evolve. You may go from insuring multiple vehicles to just one, or decide a car is no longer worth carrying collision and comprehensive coverage on

So what do you do if you need or want to remove a car from your insurance policy? Thankfully, the process is usually quick and straightforward with most major insurance providers. Here’s what you need to know about taking a vehicle off your policy:

Why Would You Remove a Vehicle?

There are a few common reasons you may need to remove a car from your insurance:

  • You sold the vehicle or gave it away. Once you no longer own the car, you obviously don’t need to insure it anymore.

  • The car was totaled in an accident. If your vehicle is totaled or damaged beyond repair in a crash, your insurer will declare it a total loss and pay you its actual cash value. You can then remove the totaled car from coverage

  • You have an older car you’ve stopped driving. If you have an unused vehicle that’s getting up in years, you may decide it’s no longer worth paying for comprehensive and collision coverage. Removing those coverages can save you money.

  • You need to reduce your premium. Eliminating a vehicle from your policy is one way to potentially lower your overall insurance costs. This is especially true if the car is driven by a high-risk driver like a teen.

  • You added a car temporarily. Sometimes you may need to add a rental car or other temporary vehicle. Once you no longer need that short-term coverage, removing the car can help avoid unnecessary premium charges.

No matter the reason, taking a car off your policy is usually a quick and easy process these days.

How to Remove a Vehicle from Your Insurance Policy

Many major insurance providers now allow policyholders to log in and manage their auto insurance digitally. This online account management makes it simple to remove a vehicle when needed.

Here are some typical steps to follow:

  • Log in to your account. Access your insurance account online or through the provider’s mobile app. You’ll need your policy number and other credentials to log in.

  • Find your vehicle list. Navigate to the section of your account that shows covered vehicles. This may be under a tab called “My Vehicles,” “Covered Cars,” or something similar.

  • Select the vehicle to remove. Find the specific car you want taken off the policy and select the option to remove it. There may be a button or link labeled “Remove Vehicle” or “Delete.”

  • Confirm the removal. You’ll get a message verifying that you want to delete the car from coverage. Confirm that you do wish to remove it.

  • Review changes. You’ll receive a notification that the vehicle has been removed. Review your new policy documents and Declarations Page for confirmation. Your premium may be adjusted lower.

  • Return license plates. Don’t forget to remove the license plates from the deleted vehicle and return them to the DMV as required in your state.

The entire process often only takes a few minutes to complete online. Some insurers may require you to call your agent or customer service to remove a vehicle, but many allow online account management.

What Happens When a Vehicle Is Removed?

So what exactly happens when you take a car off your policy? Here are some key points:

  • No more coverage. The removed vehicle will no longer have any insurance coverage at all. Make sure to terminate coverage only after the car has been sold, totaled or stopped being driven.

  • Premium reduction. Your overall insurance premium may decrease, since you have one less car to cover. The amount depends on the specific vehicle.

  • Policy reissued. You’ll receive updated policy documents reflecting the vehicle removal. Check that these are correct.

  • Possible mid-term cancellation. Removing a vehicle mid-policy term may lead to cancellation fees in some states. Your insurer can explain any cancellation rules.

  • Refund or credit. If you already paid the full policy term premium, you may get a prorated refund. This refund might be issued by check or applied as a credit to your account.

As long as you timely notify your insurer about the vehicle termination, the removal process is straightforward for most major insurance providers.

What If You Have an Existing Claim on the Vehicle?

If you need to remove a vehicle that has an open claim, make sure to discuss how this will impact the claim process. The claim may need to remain open until final resolution and payment by the insurer.

Some other situations that require extra coordination include:

  • Leased vehicle – You’ll need to notify the leasing company and possibly have them contact the insurer to remove the vehicle.

  • Financed vehicle – Your lienholder may need to agree to the removal and be named on any refund check.

  • Recent accident – An open claim may prevent immediate removal if the total loss, repairs or liability has not yet been settled.

As long as you talk to your insurance company about existing claims, they can guide you through the proper steps to avoid problems. Don’t just remove a vehicle online without checking in about an open claim first.

Are There Any Drawbacks to Removing a Car?

While removing an unneeded vehicle can save you money on premiums, there are a couple potential drawbacks to note:

  • Higher per-vehicle cost – With fewer cars on your policy, the per-vehicle rate may increase. Make sure total savings outweigh this impact.

  • Gap in coverage – The removed vehicle will be uninsured until added to a new policy. Avoid gaps by timing the termination right.

  • Cancellation fees – Some states impose fees for mid-term cancellations. Check if removing the car qualifies as a cancellation.

  • Eligibility issues – Having insufficient vehicles may affect multi-policy or group discounts.

For the most part, you should see net savings by trimming unused vehicles from your policy. But do pay attention to any downsides specific to your insurer and location.

Tips for Removing a Vehicle Pain-Free

Follow these tips for the fastest and smoothest process to take a car off your insurance:

  • Remove it as soon as you sell or stop driving the vehicle to avoid paying for unnecessary coverage.

  • Use online account management if available through your insurer.

  • Double check the vehicle details to avoid removing the wrong car accidentally.

  • Take prompt action if you receive cancellation notices or bills for the terminated vehicle.

  • Return the license plates to avoid registration suspension or fees from the DMV.

  • Consider adding another vehicle first if you want to maintain multi-auto discounts.

  • Discuss required steps for a leased, financed or damaged vehicle before removing.

With today’s digital policy management, removing unnecessary vehicles is usually quick and easy. Just take care to time it right and take any follow-up steps needed to avoid coverage gaps or added fees.

Can I Re-Add a Removed Vehicle Later On?

Yes, you can typically add back any vehicle that you previously removed from a policy, with no penalty or lapse in coverage. As long as you maintain continuous insurance on your main vehicle(s), deleting and re-adding cars as needed usually isn’t an issue.

Steps to re-add a vehicle:

  • Log into your insurer’s website or mobile app.
  • Go to the page to manage covered vehicles.
  • Select the option to add a car.
  • Enter the VIN and details for the vehicle you want to re-add.
  • Confirm the coverage options you want.
  • Review the updated policy documents reflecting the added car.

The insurer will pick your policy back up as if the car was never removed. Rates for re-added vehicles are usually the same as when you first insured it.

Just be aware of a couple potential pitfalls:

  • If there was a lapse in overall coverage, you may pay higher rates on all vehicles.

  • Make sure the car wasn’t added as a replacement vehicle, which would require a deletion first.

Check with your insurance company if you have any concerns about re-adding a previously removed vehicle. But in most cases, it’s a smooth process to pick back up where you left off.

Key Takeaways on Removing a Car from Insurance

Removing an unneeded vehicle from insurance is an easy way to eliminate unnecessary costs from your policy premium. Just keep these key points in mind:

  • Log into your account online to conveniently delete the vehicle from coverage.

  • Make sure to maintain continuous coverage on your driver(s) and all remaining cars.

  • Be aware of any cancellation fees your state may impose for mid-term removals.

  • Review the adjusted premium and policy documents to verify the change.

  • Consider re-adding the same vehicle later on without penalty, if needed.

With modern online policy management, amending your coverage by removing a vehicle is a quick and straightforward process with most insurers. Just take any appropriate follow-up steps to avoid gaps in insurance protection.

can i remove a vehicle from my insurance policy

Why is comparing auto insurance companies essential?

If you’re looking for a better car insurance deal, don’t get in a hurry to grab cheaper rates. Instead, take your time and look for auto insurance quotes that work for you.

According to the National Association of Insurance Commissioners (NAIC), you could pay as low as $90 a month for full coverage car insurance. However, your rates will vary.

Because auto insurance is based on a person’s age, driving record, credit history, location, vehicle, and type of coverage, among other things.

Check out the information below to see how much full coverage and liability-only coverage cost.

Companies Monthly Full Coverage Auto Insurance Rates Monthly Liability-Only Auto Insurance Rates
Allstate $318 $162
American Family $224 $114
Farmers $288 $147
Geico $179 $91
Liberty Mutual $398 $203
Nationwide $229 $117
Progressive $283 $144
State Farm $235 $120
Travelers $287 $147
USAA $161 $82
Average $260 $133

Liability-only coverage is much cheaper than full coverage. But full coverage auto insurance has more perks, such as collision and comprehensive insurance.

Drivers who are still making payments on their vehicles are required to carry full coverage car insurance.

It’s possible to save money on your insurance by switching to liability-only auto insurance if you’re not making payments on your car.

When auto insurance becomes too expensive, start looking for better deals at other companies. But you’ll need to cancel your car insurance policy before you can start another one.

Is it bad to remove a car from your auto insurance?

It depends on your situation. Take your car off of your current insurance policy before you get a new one. This is a bad idea if you’re looking for car insurance.

It’s not a good idea to remove auto insurance from a car with no coverage set up. This would create a coverage gap, ultimately increasing your risk.

Increased risk means more expensive auto insurance rates at the former and upcoming insurance companies.

How to remove a vehicle from your insurance policy

FAQ

When should I remove a car from my insurance policy?

If you’ve sold your vehicle or lost your car in a total loss accident, you’ll need to remove the car from your auto insurance policy. Maybe you want to buy another car insurance policy. If so, you’ll need to set up insurance with another company.

Why does my insurance go up when I remove a car?

Your car insurance rate went up after removing a vehicle from the policy most likely because you weren’t given a multi car discount anymore. Companies usually offer a multi-car discount that lowers premiums, and when you go down to one car that discount is removed.

When can I remove my car from insurance after selling it?

Yes, you can cancel your car insurance after selling your car once you’ve signed over the title to the new owner, completed the bill of sale, and submitted a Notice of Release of Liability to your state’s department of motor vehicles, if your state requires one.

How do I remove a car from my Progressive policy?

Log in to your policy anytime to add or remove vehicles or drivers, change addresses, pay bills, and more. Or call us anytime at 1-800-776-4737, and a Progressive insurance representative will assist you. Keep in mind that some changes will affect the price you pay for insurance, so your premium may change.

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