What are the Laws regarding

by cliff » Tue Oct 05, 2010 09:12 pm
Posts: 1
Joined: 05 Oct 2010

What are the Laws regarding Non Owners auto insurance. In other words, if you have a valid drivers license but do not own a car, is there a law that requires you to carry non owners insurance? If so I would like to read the law.

Total Comments: 5

Posted: Tue Oct 05, 2010 10:52 pm Post Subject:

You don't need to have insurance just because you have a DL. However, any vehicle you drive needs to be insured (at least in about 48 states).

Posted: Wed Oct 06, 2010 03:53 am Post Subject: cash out w/lien holder

my truck was in an accident. The insurance company did an estimate. I decided to cash out because rather than chop off a fender and weld on a new one I was able to get an intack truck bed newer model for alittle more than what they would have done the repair for. I decided to cash out instead of using the regular route. I purchased the new bed for the truck and now i can get the whole truck painted (clear coast is really bad on it). If I had gone with their estimate and shop or any other shop with the repair plan they had. The truck would look horrible due to the fact the paint would not match. So I decided to cash out. The insurance company sent me a check naming me and the lien holder on it. Now the lien holder wants me to endorse the check and send it to them. They then will reimburse me for what I have spent on the new parts and they will pay the paint shop for the paint job and if there is anything left over they will not send me a check but put it towards the principal on my loan. Is that legal and is there a law that states that an insurance companies have to name the lien holder on the check.

Posted: Wed Oct 06, 2010 05:51 am Post Subject:

First, read my sig.

Is that legal and is there a law that states that an insurance companies have to name the lien holder on the check.

I doubt it. The LH would need to have you sign the check and send it to them. Did you do this? If so, it would not be up to you to recover your money. That probably means you'd need to file suit against them.

If this is already a done deal why not ask the LH to apply the excess to your _next_ payment amount. That way you'd only be out the money for a month at the most.

Posted: Wed Oct 06, 2010 09:38 am Post Subject:

Now the lien holder wants me to endorse the check and send it to them. They then will reimburse me for what I have spent on the new parts and they will pay the paint shop for the paint job and if there is anything left over they will not send me a check but put it towards the principal on my loan. Is that legal



It could be if that is a provision in your AUTO FINANCE CONTRACT. Whether they apply any excess amount to principal or a loan payment really makes little difference (except that by applying it directly to principal, it will slightly reduce the total interest you will pay by the time the loan is repaid).

You could always send them the check without your signature on it and tell them you want THEM to endorse it and send it back to you and when all is said and done, if anything is left over you'll use it to make your next loan payment.

Fact is, it's their vehicle. They can dictate what you do with it. If you don't like it, you can pay off the loan early and be done with them.

Posted: Wed Oct 06, 2010 03:30 pm Post Subject:

Fact is, it's their vehicle. They can dictate what you do with it.

But the excess money has nothing to do with that. The OP states he's going to go a route that is less expensive but have the repairs done none the less.

In this case I think the LH is just being greedy in wanting back end money up front. This does not lower the monthly payments so the LH would get money in advanced... for nothing.

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