When do you guys remove the car from your car insurance when trading in with Carvana/Vroom? Do you remove it as soon as they pick it up or when the money hits your account?
It depends on your state.
In Maryland they do not want you to cancel insurance till MVA gets your tags.
So in my case I sold Ridgeline to Carvana at 10 am in the morning and went to pick up MY at 3pm. Almost too good to be true, but was perfect timing.
So I dropped my previous car from insurance and replaced it with new one since Tesla wouldn't give me car till they see insurance with Tesla in there.
2 weeks I got a fee from MVA for having uninsured vehicle. Went to drop my tags and remove that fee and they were puzzled by Carvana contract since it didn't have any info on who the new owner is. Took a while for them to research but eventually they waived the fee.
So if you are in MD you would need to carry your traded or sold vehicle for another 2-3 days before you cancel insurance.
Same thing happened with my wife's trade in, for some reason you can no longer transfer plates unless they are vanity plates. MD issues you new ones.
So it is very stupid that you traded the car and left with new one but MVA wants you to keep it insured for 2-3 days. I dropped insurance same day and dropped the plates at MVA immediately after we got a new car. No fees this time
The market is crazy, we got amazing trade in number from dealer couple grand higher than Carvana and benefited from not paying taxes on trade in value and drove away new car at $750 below MSRP while others were asking $5000 market adjustment. Never thought I would be happy getting vehicle at MSRP