How to Remove a Car from Your Auto Insurance Policy

What removing a car from your policy means

Removing a vehicle from your auto insurance policy usually lowers your overall premium because you’re insuring fewer vehicles. The policy will cover only the remaining cars on the account, and some discounts tied to multiple vehicles may change.

Reasons you might remove a vehicle

• Selling or trading in the car
• Not driving the car anymore or using it as a secondary vehicle
• Consolidating coverage to simplify your policy or reduce costs

Additional considerations

If a car is financed or leased, your lender or lease company may have specific requirements about maintaining insurance on the vehicle until the loan is paid off. Always check any written agreements you have with lenders or dealers.

How removing a vehicle affects coverage and costs

Removing a car can change your discounts (such as multi-vehicle discounts) and may alter your overall premium. It can also change liability limits and coverage on the remaining vehicles. Some insurers apply the change immediately; others require a processing period.

Possible premium changes

Premiums often drop after removing a vehicle, but the exact amount depends on factors like the remaining drivers, driving history, and the other vehicles on the policy.

What you need before you remove

• Your current policy number and the vehicle details (VIN or license plate)
• The date you want the change to take effect
• Basic information about the car being removed (whether it’s sold, traded, or no longer driven)

Other considerations

If you still have a loan or lease on the vehicle, have the lender’s requirements handy, as you might need to provide proof of insurance or arrange a transfer of coverage.

Steps to remove a vehicle from your policy

• Log in to your insurer’s online portal or contact customer service
• Identify the vehicle you want to remove and select the effective date for the change
• Confirm the updated coverage for the remaining vehicles and review any premium adjustments
• Save or request written confirmation of the change and updated proof of insurance
• Make note of when your new ID card or policy documents will be issued

After the removal: next steps

• Review your updated policy documents and ID cards to ensure accuracy
• Watch for any refunds or credits if you prepaid premiums
• Keep an eye on your renewal notice to verify the change is reflected in future bills
• If you sell or dispose of the car, retain sale documents and proof of transfer for your records