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 Posted: Wed Oct 01, 2008 2:01 am Post subject: Auto insurance questions!!!! |
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I own a truck and the loan is in my name.....I am selling the truck and they are now paying the monthly payment....the loan has stayed in my name, do I have to be the one carrying the insurance on the truck or is it ok as long as they put insurance on the truck? Some please help me with this question....I appreciate it much.
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zduncan 2077
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| Posted: Wed Oct 01, 2008 2:30 am Post subject: |
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You are a trusting sole. If the "new owner" stops or is late with the payments, it's your credit that is getting trashed.
Personally, I wouldn't recommend this arrangement with any of my customers. I suppose if you really had to do it this way, I would get a policy with both of your names and have him pay the premiums.
Talk to your insurance agent.
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LifeIsGood
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| Posted: Wed Oct 01, 2008 2:49 am Post subject: |
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| Well it is my parents and they pay the payment to me and I mail it off.....they pay big payments to and there's not much left on the truck thats owed....I will have them get a seperate insurance policy on the truck so that they are covered and that I am covered on mine....thank you very much. |
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zduncan2077
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| Posted: Wed Oct 01, 2008 4:34 am Post subject: |
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Hi, I'd still suggest that you maintain at least the liability coverage on the truck since the loan is still on your name.
Was there a transfer of title on the vehicle? If your parents are the rightful title owner of the car, then you may not need to maintain the coverage. But if you have remained the owner of the vehicle, then it'd be better for you to maintain the coverage.
However, if the vehicle is sufficiently old & if there isn't much loan left on it, you may think of dropping the expensive collision and comprehensive coverage.
Just seek your agent's view in this regard. |
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jeorge
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| Posted: Wed Oct 01, 2008 5:12 am Post subject: |
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| Yeah I am still the title holder on the vehicle, I have very minimal coverage on it now, its a 2000 GMC pickup single cab 4x4....its been in one wreck already but it was fixed by my insurance....there is about $5000 still owed on the vehicle. |
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zduncan2077
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| Posted: Wed Oct 01, 2008 6:34 am Post subject: |
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If the vehicle is sufficiently old then you may consider disposing-off the collision coverage. However, the problem here is that if you wreck the car and its then deemed totaled then you may still owe to the financing company even without the car. Hence, you're required to weigh the options of being able to pay the outstanding amount out-of-pocket, since you have no collision protection on it.
Since, you're still the title holder (& that makes you the legal owner of the vehicle) if the truck gets involved in an accident where you are the party at-fault, your auto insurance policy will act as the primary policy. Hence, you are also required to ensure that you have enough liability coverage to compensate the other party for his incurred losses. |
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jeorge
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| Posted: Wed Oct 01, 2008 2:08 pm Post subject: |
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I'm thinking the finance company owns the title. They will also want you to have full coverage as long as you are making payments.
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LifeIsGood
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| Posted: Thu Oct 02, 2008 12:25 am Post subject: |
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| I agree with life the finance company more than likely holds the title unless of course it is a personal loan. I would still do whatever I could to prtect myself. It wouldn't necessarily be your parents you would half to worry about but the other driver if there is an accident. |
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fireyone
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| Posted: Thu Oct 02, 2008 12:33 am Post subject: |
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Since it's M&D, I'd probably ask them to let me get a policy in both our names for the truck. That way everyone is covered.
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Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller |
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LifeIsGood
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| Posted: Thu Oct 02, 2008 12:40 am Post subject: |
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| That sounds like a plan. They can pay for teh policy but get it in your name and list them as drivers. If the truck is through a finance company you will have to have the insurance in your name anyway. |
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fireyone
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