by lynncrum » Thu Jun 30, 2011 12:30 am
I just purcahsed a car from a close friend of mine. The car is financed and I am to pay the remaining payments. I called and had the car insured in MY name. I didnt have a problem in doing so, but now I was told by someone this may not be legal. I am very concerned. Can you please advise? I am in Tennessee.
Posted: Thu Jun 30, 2011 02:26 am Post Subject:
It's not illegal... though the deal you made to by the car is not the best thing in the world.
You need to have an insurable interest in the vehicle. This does not mean you need to own it. You need to suffer a direct loss if there was damage or the loss of the vehicle. Since you are making payments on it (not a good choice), you have an insurable interest.
What will happen if your friendship goes sour while you are paying off the vehicle? What if you pay it off and your "friend" does not want to sign the title over to you?
Add your comment