What to do after you sell your car

Do you keep your license plates when you sell a car?

Usually, yes, the seller takes them off. In 41 of the 44 states and DC we've checked against official sources, the plates come off the car: you keep them in 30 and turn them in or transfer them in 11. They stay on the car in Alaska, California and Minnesota, and in Texas it's your choice. Your state page lists the rule.

Where plates go back to the state, turning them in often closes the registration, so do it before you cancel your insurance. A state missing from the table is one whose rule we couldn't confirm on an official page; check with its motor vehicle agency. Every rule we track is in one place on our seller rules by state page.

Six steps

1. File a release of liability. Most states offer it online. It records the date and time you stopped owning the car.
2. Handle the plates. In most states plates stay with the seller. Some states want them returned, and a few let them stay on the car.
3. Cancel or move your insurance, but only after the car is gone. In New York you'll need to surrender the plates first.
4. Cancel or transfer the registration, and ask about a refund for unused months where your state offers one.
5. Remove the car from your toll account and from connected-car apps like your manufacturer's app.
6. Keep the bill of sale and a photo of the signed title, in case a ticket or toll arrives later.

What is a release of liability, and do I have to file one?

It's a notice you file with your state's motor vehicle agency saying when you sold the car and to whom, so later tickets, tolls and accidents aren't yours. States call it different things, such as a notice of sale, a transfer notification or a report of sale. We've confirmed a named seller notice in 27 states; where there's a deadline, it's usually days, not weeks.

When should I cancel my car insurance after selling?

After the car has left and you've been paid, never before, because you're responsible for the car until it's gone. If your state has you turn in the plates, return them first: cancelling insurance on a car that's still registered can trigger a penalty in some states. Then ask your insurer about a refund for the unused part of the policy.