Owning a car is a great experience, but like all good things, one day, it will come to an end. Whether from age, wear-and-tear, an unexpected accident, or a combination of all three, you’ll have to part with your automobile and possibly sell it for scrap. In that unenviable instance, you may be wondering if scrap car insurance is still necessary. The answer is both yes and no, depending on exactly how you will dispose of your car. If your intent is to sell it to a scrap car removal service, then the short answer is no. If you intend to store, repair, and drive it again someday, then the answer is yes. To find out whether scrap car insurance is needed for your scrap car, refer to the following quick guide provided by Auto-Scrap.

Scrap Car Insurance and Scrapping Your Car

After selling your scrap car to a scrap car removal service, scrap car insurance is no longer needed. However, that is dependent on what the scrap car removal service will do with your car after it is taken off your premises. In any event or contingency, you’ll want to make sure that the transfer of ownership has been completed and the car is no longer legally yours. This way, you won’t be liable for the vehicle in any of the following scenarios:

Scenario 1: Your Car is Scrapped and Recycled

If your car is being sold for scrap (i.e. it is being stripped of usable parts and recyclable materials) then there is no need for scrap car insurance. You can call your company to either cancel your coverage or transfer it to your new car (if applicable). 

Since your scrap car will be disassembled and never be roadworthy again, you won’t have to worry much about any legal liabilities. However, it is always good practice to verify that your title of ownership has been transferred to the car’s new owners (i.e. the scrap car removal company).

Scenario 2: Your Car is Repaired and Sold as Used

If you or the scrap car removal company has repaired your scrap car and will be reselling it for intended road-use, you’ll need to be strategic about canceling your scrap car insurance. This is because unless ownership has been completely transferred, you may still be liable for any damages or crimes your vehicle has incurred (i.e. accidents, speeding/parking tickets, etc.). So if ownership has been completely transferred, feel free to call your scrap car insurance provider to cancel your service or switch it to your new car.

Scenario 3: Your Car is Donated

If you are donating your car to a scrap car removal service and/or charitable institution that intends to drive it, you must again be strategic about your scrap car insurance. Once ownership of the car has been legally and fully transferred, you can call your insurance company to cancel or transfer your coverage to your new car. This way, you can avoid any liabilities for your donated scrap car.

Insurance for Your Stored Scrap Car

If you decide that you’d like to keep your car in storage, scrap car insurance is something you will need. If it is still roadworthy, functional, repairable, moveable or towable, the vehicle carries the potential to become involved in an accident, thus requiring insurance. If you’re worried about high insurance rates and paying undue fees, inquire about vehicle storage rates, promotions, and deals with your car insurance provider.

For more information about scrap car insurance or to sell your car for scrap today, contact Auto-Scrap.