Selling an uninsured vehicle

**TwoTires** · 05-04-2010, 07:35 PM

Not motorcycle related but I thought I’d take advantage of the great insurance support on this forum.
I’m selling my car and have already cancelled my insurance. Which options does the buyer have for removing the vehicle? I’ve read horror stories of sellers getting stuck with impound fees from vehicles not registered to the new owner. I’m also worried that if there were an accident I’d be liable. Is it customary to have the person tow an uninsured vehicle or do I have him/her register a temp plate/insurance. Thanks in advance.

Twotires

**funrider** · 05-04-2010, 07:54 PM

Originally Posted by TwoTires

Not motorcycle related but I thought I’d take advantage of the great insurance support on this forum.
I’m selling my car and have already cancelled my insurance. Which options does the buyer have for removing the vehicle? I’ve read horror stories of sellers getting stuck with impound fees from vehicles not registered to the new owner. I’m also worried that if there were an accident I’d be liable. Is it customary to have the person tow an uninsured vehicle or do I have him/her register a temp plate/insurance. Thanks in advance.

Twotires

I'm not an insurance specialist. The owner may need insurnace if they're concerned about collision when it's theirs (they now own it) while it's towed. I sold my bikes and cars and kept the insurnace on so I could deliver the vehicle - took my plates and cancelled the insurance the next day. By signing over the ownership, you don't own it. It made for an easier sale. I tried to buy an unplated and uninsured bike - was too much a PITA to do the delivery. I'd check to see if you or the buyer can get a one day insurance policy / plate to move it.

If you sell it certified it will be better - the new owner can get it plated (insured) and drive it away with their plates.

**nobbie48** · 05-04-2010, 08:18 PM

If the vehicle was certified under your name the new owner can get temporary plates for it to let him move it. I'm not sure if they are 10 or 30 days.

He has to insure it and do the transfer. He can use the sticker to drive the vehicle around to do safety work etc.

Get the vehicle transfered out of your name and you can forget about any responsibility.

PS Insurance companies are not interested in the paperwork needed for one day policies.

**VifferFun** · 05-05-2010, 10:09 AM

Originally Posted by TwoTires

Not motorcycle related but I thought I’d take advantage of the great insurance support on this forum.
I’m selling my car and have already cancelled my insurance. Which options does the buyer have for removing the vehicle? I’ve read horror stories of sellers getting stuck with impound fees from vehicles not registered to the new owner. I’m also worried that if there were an accident I’d be liable. Is it customary to have the person tow an uninsured vehicle or do I have him/her register a temp plate/insurance. Thanks in advance.

Twotires

The person purchasing the car must ensure that they have an insurance policy and plate if they plan to drive it away. Getting the car put onto "binder" with their insurance company is as simple as a quick phone call or email to their broker/agent with the VIN, and the broker/agent can email a temporary insurance slip. I don't think you even need a plate to do this. The purchaser will also need to buy a temporary plate and stick that on the vehicle, and he's good to go. He will have to get the E-Test, Certification, Official Ownership Transfer at the MTO (to get Official Plate), Email Broker with new Plate Number, etc. but that's all his job, not yours.

If the buyer doesn't have insurance and a temporary plate, then he will have to tow the vehicle.

**TwoTires** · 05-05-2010, 11:05 AM

I'll have to draft another "Bill of Sale" because the UVIP only has one copy, which apparently goes to the buyer.

Thanks for the heads up guys.

**qaz393** · 05-05-2010, 07:21 PM

what happens if the car gets rear ended while its being towed uninsured? i guess the person that crashes into it or the tow truck driver will have some sort of fault and you will be reimbursed?

**joy** · 05-05-2010, 07:51 PM

you should be fine as long as you both signed something.

**Avi Singh** · 05-05-2010, 08:12 PM

Originally Posted by qaz393

what happens if the car gets rear ended while its being towed uninsured? i guess the person that crashes into it or the tow truck driver will have some sort of fault and you will be reimbursed?

There would be no coverage for the vehicle being towed if no coverage was ever purchased on it.

**qaz393** · 05-05-2010, 08:35 PM

Originally Posted by Avi Singh

There would be no coverage for the vehicle being towed if no coverage was ever purchased on it.

so no reimbursements by the other companies? this sounds way to unfair considering how if someone crashes into a guardrail/light post, the city/owner can bill the person that damaged it

**Avi Singh** · 05-05-2010, 08:47 PM

Originally Posted by qaz393

so no reimbursements by the other companies? this sounds way to unfair considering how if someone crashes into a guardrail/light post, the city/owner can bill the person that damaged it

No reimbursement by any other company. If a person owns a vehicle and fails to insure it, then they have no recourse in Ontario. If the vehicle is not being towed and is being driven instead and is rear ended, the rear ended vehicle's insurer will pay to fix the damages.

Perhaps one of the claims folks can chime in, but I do not believe you will be paid for this if the vehicle is uninsured.

As for the guardrail, it's no different than my house. If you crash into it and damage it, then you are responsible for fixing it. Personal Private Property is not governed by the same rules that govern automobiles.

**qaz393** · 05-05-2010, 11:35 PM

Originally Posted by Avi Singh

No reimbursement by any other company. If a person owns a vehicle and fails to insure it, then they have no recourse in Ontario. If the vehicle is not being towed and is being driven instead and is rear ended, the rear ended vehicle's insurer will pay to fix the damages.

Perhaps one of the claims folks can chime in, but I do not believe you will be paid for this if the vehicle is uninsured.

As for the guardrail, it's no different than my house. If you crash into it and damage it, then you are responsible for fixing it. Personal Private Property is not governed by the same rules that govern automobiles.

towing uninsured vehicle is risky for the owners? i never knew that. cant the owner claim the other people insurance since they are 0% fault. im still confused.