Selling your car for scrap is the easy part. The step people forget is closing out the plates and insurance afterward — and skipping it can leave you liable for a car you no longer own, or paying for coverage you no longer need. The good news: both tasks take minutes, and one of them often puts a refund back in your pocket. Here's exactly what to do in Ontario once your scrap car is gone.
Do I keep my licence plates when I scrap a car in Ontario?
Yes. In Ontario, licence plates belong to the person, not the vehicle. Before your car is towed, unscrew both plates and keep them. Never leave them on a scrap car — if the plates stay with a vehicle that's no longer yours, you could be tied to tolls, tickets or worse. Removing your plates is the single most important step for protecting yourself, and a reputable buyer will always confirm you've taken them off before loading the car.
What do I do with my plates after scrapping the car?
You have two choices. One: transfer the plates to another vehicle you own — a quick update at ServiceOntario or online that saves you the cost of new plates. Two: if you don't need them, return the plates to any ServiceOntario centre. Hang on to the plate portion of your vehicle permit, and keep a copy of your signed bill of sale; together they prove the car left your ownership on a specific date.
How do I cancel my car insurance after scrapping?
Call your insurance broker or company and tell them the vehicle has been sold for scrap, giving the date and the bill of sale details. They'll cancel the policy (or remove that vehicle from a multi-car policy). Don't just stop paying — let the insurer close it properly so there's no lapse on your record. If you're replacing the car, you can transfer the policy to the new vehicle instead of cancelling.
Will I get an insurance refund for a scrapped car?
Often, yes. If you paid your premium in advance, you're typically owed a refund for the unused portion of the term after the cancellation date. The exact amount depends on your insurer and how the policy was billed, and some companies apply a small short-rate adjustment. Either way, ask the question — a refund on several months of unused coverage can be meaningful, and it's money you'd otherwise leave on the table.
What paperwork should I keep after scrapping my car?
Keep three things: your copy of the signed bill of sale / transfer, the plate portion of the vehicle permit, and any confirmation from your insurer that the policy was cancelled or transferred. This small file is your safety net. If you ever receive a notice for the vehicle after the sale date — a toll, a ticket, a registration query — your dated bill of sale proves the car was no longer yours. Hold on to it for at least a year.
Let your scrap buyer handle the hard part
When ScrapCash GTA picks up your car, we complete the end-of-life vehicle bill of sale and the ownership transfer on-site, confirm your plates are removed, and file the salvage paperwork with ServiceOntario — so the vehicle side of the process is done for you. You're left with two quick phone-or-online tasks: return/transfer your plates and cancel your insurance. Call (647) 983-9577 for a free same-day pickup anywhere in the GTA.
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We’re a family-run, Ontario-licensed auto recycler that has bought and recycled 15,000+ vehicles across the GTA since 2010. Our guides are based on real, day-to-day experience buying scrap and junk cars, handling ServiceOntario paperwork, and paying fair, transparent prices.