Whether you're simplifying life, saving money, or responding to changed circumstances, moving from two cars to one requires insurance adjustments. Here's how to handle the transition.
Steps to Remove a Vehicle
1. Contact Your Insurer
Notify your insurance company when you sell or stop using the second vehicle. Provide the date you want coverage to end.
2. Coordinate with the Sale
Keep coverage until the vehicle is sold and titled to the new owner. Don't cancel early and risk a coverage gap.
3. Get Confirmation
Request written confirmation that the vehicle has been removed from your policy and what your new premium will be.
Financial Impact
Premium Reduction
You'll pay less overall, but the reduction might be less than you expect because:
- Multi-car discounts disappear (typically 10-25%)
- Remaining vehicle absorbs all driving risk
- Per-vehicle cost often increases slightly
Refund for Prepaid Premium
If you paid ahead, you should receive a prorated refund for the removed vehicle's coverage.
Tip
This is a good time to shop around. With only one car, quotes from different companies may be more competitive.
Coverage Review
Evaluate Your Remaining Coverage
Now that you're down to one car, consider:
- Is coverage adequate for your sole vehicle?
- Should you increase collision/comprehensive since this is your only transportation?
- Is your liability coverage sufficient?
Consider Rental Reimbursement
With one car, being without it for repairs is more disruptive. Rental reimbursement coverage becomes more valuable.
Roadside Assistance
Similarly, roadside assistance matters more when you can't just take the other car.
Multiple Drivers, One Car
If you have multiple licensed drivers in your household:
- All drivers should still be listed on the policy
- The primary driver is usually assigned to the vehicle
- Premiums reflect the combined risk of all drivers
When You're Not Driving
If you're keeping a vehicle but not driving it (stored in garage):
- Ask about storage or suspension of coverage
- Keep comprehensive coverage for theft, fire, vandalism
- Drop collision and liability if truly not being driven
- Restart full coverage before driving again
Downsizing to one car simplifies many things, including insurance. Take the opportunity to ensure your remaining vehicle has the coverage you need.