What’s required to cancel insurance on a motor vehicle in the US Virgin Islands?

Among the many questions we receive on a regular basis relates to residents of the Virgin Islands who have recently sold or transferred ownership of their car, and they want to discontinue their insurance on that vehicle.  Many people are very surprised to learn that – per Virgin Islands law – insurance cannot be cancelled prior to the transfer or cancellation of the vehicle’s registration!

Know the Law Before Selling or Transferring your Vehicle
Virgin Islands law makes the seller of a vehicle responsible for ensuring that the title is transferred promptly (within 24 hours) to the name of the buyer by the VI Bureau of Motor Vehicles (BMV).  It is NOT enough to simply sign the back of the title. In addition to potential problems relating to delays in transferring ownership, Virgin Islands law requires that the vehicle registration be canceled at BMV prior to cancellation of insurance on that vehicle.  Therefore, the insurance on a vehicle you have sold cannot be canceled prior to the date that the registration was canceled at BMV.  Many VI residents attempt to cancel their insurance prior to the transfer or cancellation of their registration.  Laws in the Virgin Islands prohibit this from happening.  If there is a delay in canceling the registration, you would lose the insurance premium for the period of this delay, regardless if the buyer insured the vehicle for that period.  

While we understand that this may cause frustration for some of our clients, we unable to vary from this requirement. But it is also for your protection. It is recommended that the seller accompany the buyer to BMV at the time of the sale to make sure all is completed in a timely fashion. Be sure to get the registration marked ”cancelled” at the time this is done.

Don’t fall into the potentially costly trap of signing over your title and leaving it up to the buyer to transfer the title at BMV.  Make sure you transfer or cancel the registration FIRST at BMV.  For more information, visit the website for the VI Bureau of Motor Vehicles https://bmv.vi.gov/vehicles/ or contact your Client Service Representative at our offices.