Covering Members Of Your Family with Insurance

Selling A Car To A Private Party? Why It's So Important To Sign Over The Title Right Away

by Billie Hughes

If you're selling a car to a private party for the first time, you might not know about some of the hidden logistics of the matter. It seems like simply posting an ad, finding a buyer, accepting the cash, and handing over the keys would seal the deal, but there's another component that is much more important:  Signing over the title. You must get the title put in the name of the buyer as soon as possible, and the following article will help you see why.

Switching The Title Takes You Off The Hook

Having the title to a car in your name is basically equivalent to having the car itself. For example, if you have a car and you loan it to your niece or nephew to drive for the weekend, the vehicle still belongs to you as long as you have the title. If the person you loaned the car to happens to get into an accident, you will be the one responsible for the damages. Does this make you see how vital it is for you to get the title put in the buyer's name immediately?

The moment the buyer drives away from you with the car, they should also be pulling off with a title that has their name on it. This means that you're probably going to want to handle the transaction at your local Department of Motor Vehicles. Both of you can go in together and have the title switched over to the other party's name right there on the spot. You'll have more peace of mind because they then own and you won't have to worry about being on the hook for an accident you had nothing to do with.

Titles Are Essential For Insurance Purposes

When a person goes to get insurance for their car, they must show that they have an insurable interest in the vehicle. Owning the title is the best way to do this, because if a car is titled to you, it means that you are more likely to care about what happens to it. Get the car titled in the buyer's name right away so they won't run into complications at the insurance office.

After you've put the title to the car in the other person's name, they are free to drive with confidence. Your transaction will be complete and you can start thinking about what you're going to do with the cash!

For more information, reach out to companies like R L Jones Insurance Services Inc.

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