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Insurance with a trade in?

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This was a weird one for me. IN the past I would just flip my insurance while trading in my vehicle, but Tesla asked that I keep insurance on it until I get my new registration in the mail.

Is that normal? Or is that a weird state of North Carolina thing? I've bought maybe 4 or 5 cars in the last 10 years and never had someone say that, I just changed my insurance, gave them the policy # and moved on. Because right now I now have four vehicles instead of three and my insurance company wants that premium vs the $10 change it was before that.
In California the DMV has a form called Notice of Nonresponsibility that you can file with DMV to let them know you sold the car. That covers you in the event the buyer gets in a wreck before they change the title but have possession. I am sure you can notify your insurance to cancel insurance as soon as you trade it in and give possession to Tesla. If Tesla wants to take the risk that is your business but you should not have to pay extra days insurance. They do insist you have insurance when they sell you a car.
Tesla delivered my MX to my house but did not pick up my trade in for 5 days. The day I got the Tesla I took the plates off my trade in, parked it and canceled its insurance. Tesla made no request about keeping it insured.
it has something to do with the plate transfer? Something weird to NC. Which is odd, as I've bought cars through dealers for years here but the DMV said until I get notice the transfer is complete per The referenced data from the DMV is:

To transfer a license plate from one vehicle to another, the individual transferring the plate must meet the following requirements:

  • Maintain on both vehicles liability insurance from a provider licensed to do business in North Carolina.
  • The vehicle to which the license plate is being transferred must have a current inspection.
  • The license plate being transferred must be valid.
  • The name on the applicant's license and the vehicle title must match.
  • Prove the vehicle is covered under liability insurance from a North Carolina-licensed provider.