When can I cancel my motorcycle insurance policy?
I purchased a used Harley from a dealership in Wisconsin in 2022, which is financed through HDFS/Eaglemark. While I don’t have much left on the loan, I recently relocated to Minnesota for a new job that came with a significant pay cut, followed by a series of financial setbacks. My savings are nearly depleted, and I’m now living paycheck to paycheck without any hope of rebuilding my savings.
To improve my situation, I’ve decided to sell my motorcycle. On March 19, I went to the dealership to finalize the sale. I signed the bill of sale and the payoff documents, as well as a Power of Attorney form that allows the dealership to handle the title transfer, saving me a trip. Since I no longer have the motorcycle titled in my name, can I cancel my insurance policy? The dealership has already paid off the loan and confirmed that I’m no longer required to make payments.
Do I need to wait until the lienholder officially releases the title to the dealership, or is the signed paperwork I have (the bill of sale and payoff information) sufficient to notify my insurance company that I am no longer the owner of the motorcycle?
You should be able to cancel your motorcycle insurance policy now that you’ve sold the bike back to the dealership and they have paid off the loan. Since you’ve signed the bill of sale and given them the Power of Attorney, you have effectively transferred ownership of the motorcycle. While it’s ideal to wait for the lienholder to release the title formally, your signed paperwork should be sufficient to explain your situation to your insurance company.
Contact your insurance provider and explain that you have sold the motorcycle and provide them with the documents you have, including the bill of sale. Most insurers will allow you to cancel your policy once you can demonstrate that you are no longer the owner of the motorcycle. Just make sure to confirm any potential cancellation fees or policies they might have in place.
For your peace of mind, it could also be a good idea to request a written confirmation of cancellation from your insurance company once the policy is terminated. Good luck with your situation!