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How do you transfer car insurance to a new owner?

I am selling my car and my insurance to my friend. What are the steps we need to take to transfer everything over easily?

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Will Baldwin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
While you can sell your car to your friend, you can’t transfer your insurance policy from one person to another. Your friend will need to secure their own insurance policy for their new car.
In order to sell your car, here are some steps to take:
  • Sign over the
    car’s title
    to your friend, making them the official owner.
  • Contact your DMV to see if you will need to surrender your plates and registration.
  • If you live in a state that collects personal property tax on your car, contact your tax assessor’s office and advise them of the update.
After trading your car over to that new owner, you may want a new car and new insurance.
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