What to Do When an Insurance Company Refuses to Cancel Your Policy After You No Longer Own the Vehicle

What to Do When an Insurance Company Refuses to Cancel Your Policy After You No Longer Own the Vehicle

If you find yourself in the situation where your insurance company refuses to cancel your policy after you no longer own the vehicle you had it on, it can be quite frustrating. Proper steps and documentation can help resolve this issue, ensuring you are not overcharged or in violation of insurance laws or regulations.

Steps to Take

1. Notify the Department of Motor Vehicles (DMV)

First and foremost, it is important to inform the Department of Motor Vehicles (DMV) in your state that you no longer own the vehicle registered under the insurance policy. Most states now offer this service online, making the process faster and more convenient.

Process the necessary paperwork to remove the vehicle from your ownership. Obtain printed copies for your records. Check if your state, county, or town requires an annual tax on vehicles. If so, notify the relevant authority and ensure you have the proper documentation to avoid any additional fees.

Make sure to keep copies of all documents you submit to the DMV, including any notifications and proof of your identity.

2. Notify the Insurance Company in Writing

Notify the insurance company in writing of the change in vehicle ownership. Send them a letter or email including the following:

The signed receipt from the DMV confirming the vehicle has been removed from your ownership A copy of any other official documentation proving the change in ownership, such as a bill of sale

Request a return receipt to confirm they have received your notification. Keep a copy of everything you send, including the envelope with any postmarks.

Once you receive the signed receipt from the insurance company, it's time to take further action.

Contact Your State’s Insurance Commission

Notify the state’s insurance commission about the issue. Provide them with the necessary documentation, including any receipts or proof of notification from the DMV and any official records of vehicle ownership.

Further Action

Stop Paying for the Insurance Coverage

If you're still being charged for the insurance coverage on a vehicle you no longer own, you need to stop making payments. Most policies clearly state the number to contact for consumer assistance, usually found on the insurance card or policy document.

Call the State Agency that oversees insurance companies and explain your situation. They can provide you with additional guidance and help you resolve the issue. Unfortunately, if the situation does not improve, consider reporting the insurance company to the relevant state agency in charge of insurers. This can be a drastic step, but it is a viable option to protect your interests.

Notify the Insurance Company of Ownership Change

Finally, send the insurance company a copy of the bill of sale or any other relevant documents proving that you no longer own the vehicle. This will help to finalize the cancellation process.

Conclusion

Dealing with a slow or unresponsive insurance company can be challenging, but taking these steps can help you navigate the situation smoothly. Always keep copies of all documents you submit and follow up until the issue is resolved. Remember, your primary goal is to ensure that you are not paying for insurance on a vehicle you no longer own, and to safeguard your legal and financial interests.