How do I handle insurance etc. when selling a vehicle by owner?


Question:
I live in Michigan and the buyer is coming from Indiana. Should I cancel my auto insurance before the buyer leaves with the vehicle? What if the buyer dosn't have insurance for it yet (and can't get it today, because it is Saturday) and asks me to wait till Monday to cancel my policy on the vehicle? What about registration and sales tax?

Answer:
NEVER EVER cover strangers on your insurance (even close relatives and friends are very risky)! Your tag should come off and your insurance be cancelled before the car goes anywhere. He needs to provide current proof of insurance (most policies provide for temporary coverage of new vehicles) or NO SALE.

Any other way and you're likely to take it in the shorts.
The minute you sign the bill of sale, the car is no longer insured.

You would cancell your insurance as soon as it is sold ( next working day) The buyer is resposnible to get his own insurance. The buyer is responsbile to title, register and pay the sales tax
Sounds fishy to me. No on letting the buyer leave with your insurance in effect.
You need to remove responsibility from the car and the papers need to be notarized befor you release the car. The notary can help with paperwork if you can find one. There are a few in the phone book who are private agents and work out of their homes.
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