Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Apr 13, 2022

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Key takeaways...

  • A car title is a legal proof that you own your vehicle
  • Insurance is not required to transfer a title
  • You should contact your insurer when you sell a car to put your new vehicle on your policy

Do you have a car that you are selling and worry about what to do regarding the car title?

Owning the title means that you own the car legally and you are free to sell it to someone else. It means that you are no longer tied to any loan company so you can do what you want to do with your vehicle.

If you plan to transfer the title, you may wonder what will happen with your car insurance. Some people think that they have to have insurance on a car to transfer the title. But you do not need current insurance on the car to transfer it.

Compare car insurance quotes today and see how much you could save on your premiums. Enter your zip code into our free rate tool to begin.

Purpose of the Car Title


Consider the purpose of a car title. A car title is for the purpose of showing ownership of a car. Once you make the final payment on a vehicle, you will be sent the title to the car to prove ownership.

It is not for the purpose of proving that you have insurance, nor do you have to have insurance to sell the vehicle to someone else.

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Insurance Follows the Car

It is your responsibility to contact your insurance company when you sell a car and inform them as to the transfer so they can note this for their records regarding your insurance plan.

Also, you will want to take your old car off of your policy since you no longer own it. Look around for new insurance for your new car, if you purchased another one.

If you fail to update your information on your car insurance policy, you will not have the right insurance in place. So make sure that you change your car insurance policy to reflect your new vehicle that you want to insure if you sell your old car to someone else.

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Should I change insurance for a new car?

One of the questions you should ask yourself when purchasing a new car is whether your current insurance is sufficient. If you purchased a newer car than the one you sold, you are investing in a much higher financial commitment than you did with your previous vehicle.

You will want to increase your collision coverage or lower your deductible to account for the higher level of coverage that you will need for your new vehicle.

The question of how much insurance you should get is a difficult one to answer. Think about the amount it would take to replace your vehicle and how much you can afford to pay toward your collision deductible.

If you had a $1,000 deductible on your previous vehicle, you might want to decrease your deductible to cover your new car.

Other factors that you should consider when deciding on your coverage amounts include:

  • Your level of risk – You will want to consider your level of risk when updating your insurance. If you drive your car for work or very often, you have more risk than you would if you did not.
  • Total mileage – Your total mileage that you drive is a factor regarding your insurance options. The more you drive, the more you will want to insure your vehicle so that you will be protected no matter how much you travel.
  • Your current status – Your current demographics including your age, marital status, employment status, and credit history all influence your premium rate. You should also keep these factors in mind as you choose your insurance package.
  • Whether you have a car loan – If you purchased a new car through a car loan or finance company, the finance company would likely want you to carry a certain amount of collision insurance on the vehicle to protect their investment.
  • Discount eligibility – Look into the types of discounts you may be eligible for to save money on your policy.

How to Find the Best Insurance for a New Car


If you purchased a new car after you transfer your car title of your old vehicle, you would want to think about whether your current insurance company is the best to meet your needs.

When you change vehicles, you also change the value of your investment, and you may need more coverage than you had before.

It is important to consider how you will use your vehicle and whether you need optional coverages such as medical payments, roadside assistance, or car rentals with your new vehicle. Consider what would benefit your new car in order to protect it.

Every situation is different, so consider carefully whether you should add additional coverage that will accurately reflect your new vehicle.

Shop and compare policies and companies and discuss your new vehicle with your agent when you discuss your change in vehicles and then get a free quote and compare different companies and policies.

Every car is unique and every person is unique. That’s why you should shop and compare different plans until you find the one that works best for you and your vehicle. Enter your zip code below to compare today!