Tips to Sell Your Vehicle Safely & Securely

It's common and easy these days to sell your car yourself through online listings, but unfortunately it's not always as safe and secure as we'd hope. We can't be the only ones that have heard stories of theft, fraud, payments not going through, or threatening buyers returning after a sale. It can be overwhelming, especially for first time sellers. And your auto insurance plays a part in the process. So we have some tips for safely selling your car to keep you, your property, and your finances safe.

Keep your car insured until it’s titled and registered with the buyer.
If you have a sale ready to go or a tow truck coming to take the car to the new owner or a dealership, it is not yet time to remove the vehicle’s insurance. You agent may offer to have your car removed from your policy at a later date when you plan to have the car sold, but because plans can change and sales can fall through, don’t jump the gun. Wait until the sale goes through (see our list tip in the list). Make sure you have liability insurance on the vehicle before anyone takes it out on the road, even for a quick test drive in the neighborhood.

Don’t give out personal information.
Though the buyer may want to verify you’re a real person (thanks to very common scammers), they don’t need any of your personal information. Your name and contact info is enough. If you’re selling on a social media website, check your profile privacy settings to be sure they can’t get more information about you or your loved ones. If you’re providing the buyer with the service records of the vehicle or original dealership paperwork, block out any of your information using a black permanent marker. And make sure your glove box doesn’t contain any important paperwork of yours.

Notify potential buyers that proof of license & insurance will be required to test drive or buy the car.
This can save time and help filter our scammers, riskier buyers, and those less committed to buying. But also, if an interested buyer takes the car out for a test drive and wrecks the car, you are responsible and the claim would go on your insurance- and that driver can leave you with their mess because they hadn’t purchased it yet. You want to protect yourself and have their insurance information in case the damage costs more than your limits, in which case their insurance, as the driver, would become the secondary payer. Definitely be sure to verify proof of license and insurance at least before handing over the keys for a drive.

Meet in a public place in daylight.
Don’t invite this stranger to your home or work where they could return at a later time. Instead, offer to meet at your bank/credit union (which can also make the money transfer easier) or your local grocery store parking lot. Witnesses or security cameras are a great perk. This may come across as suspicious to a buyer who isn’t used to this, but be up front about safety/security concerns.

Consider going with them on the test drive.
It’s been known to happen- potential buyers taking a car for a test drive and never returning. It’s a very easy steal that requires little work on their part. Make that difficult by insisting on going on the test drive with them as a passenger where you can also make sure they don’t damage your car. Of course, some won’t feel comfortable being alone in a car with a stranger. Consider asking a friend to help by joining you or going on the test drive for you. If not, another option is to ask the potential buyer if you could hold onto their car keys while they’re out driving, but be cautious with collateral as thieves might give you fake car keys, cell phones, etc.

Don’t transfer ownership until the secure payment is fully complete and processed.
Stick to secure and well-known payment options. Cashiers checks are much better than certified checks. Zelle, Venmo, and Paypal are secure forms of online payment that will keep your bank/payment information private and can also provide customer service if anything is fishy. Keep that title until you have the check in hand or your own confirmation of the completed online payment.

Know your states requirements for title transfers and have the correct paperwork ready.
It is your responsibility to make sure the sale is proper and legal. Have the paperwork ready but don’t sign or show the car’s title until the payment is complete. Document the odometer reading on the title and don’t round up (as they could get in an accident right after the sale and claim you were responsible) then make a copy of the signed and transferred title or take pictures on your phone. Make sure you keep the buyers info, terms of sale, vehicle details, date & price. The DMV has sample bills of sale and release of liability information online.

Remove the vehicle from your insurance as soon as the sale goes through.
Removing that car from your insurance isn’t automatic with the transfer of sale. As soon as you are no longer the owner of the vehicle, contact your agent to remove the vehicle from your policy. Insurance is tied to the vehicle, not the driver, so if the new driver gets in an accident on the way to the DMV, you and your insurance could be on the hook regardless of ownership. The sale of a vehicle actively insured on your policy implies consent for them to drive under your insurance, regardless of who now owns the car. So get it removed right away! (But don’t cancel your policy unless you are never going to drive or own a vehicle again, even if it was the only car on your policy.)

This may seem like a lot so we hope we haven’t scared you away from independently listing and selling your car. Thanks to our online world, the process is easier than ever before and keeps you in control. Just use these tips to use that control to your advantage! Be safe, smart, and secure and we hope the sale goes well. And as usual, if you ever have questions about your insurance or just need advice from those of us at A Insurance with plenty of car-selling experience, give us a call!