Requirements to cancel insurance on a motor vehicle in the US Virgin Islands

Among the many questions we receive on a regular basis is one from residents of the Virgin Islands who have recently sold their car and ask to discontinue the insurance on that vehicle.  Many are surprised to learn that – per Virgin Islands law – insurance cannot be cancelled prior to the 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.  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.  Lt. Governor Tregenza A. Roach Esq. recently issued a Bulletin on this matter in his capacity as Commissioner of Insurance. 

While we understand that this often causes frustration for some of our clients, we are unable to vary from this requirement. But it is also for your protection, since you will still be the owner of record until the transaction is complete at BMV. 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” and dated, 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 the title FIRST at BMV, and bring your agent a copy of the canceled registration or a copy of the title or registration in the new owner’s name.  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.