My boyfriend is out of town for a 6mo. retreat & his truck is being stored at my mom's house while he is gone. She insisted on the truck being at her house cause she is the co-signer on the loan & doesn't want anyone to drive it. & It isn't being used or driven by anyone. Anyway..She still pays the monthly insurance fee. I told her to stop paying it since nobody drives the truck, but my dad says that it is required by law that the vehicle be insured. Doesn't matter if it isn't being used. He says that insurance company will notify Toyota & they will revoke the loan & take the truck. Can they do that? Is this true? Or is he full of it?
2007-02-02 17:25:49 · 21 answers · asked by DarkStar 1 in Cars & Transportation ➔ Insurance & Registration
If there is a loan on it the bank usually requires insurance to cover the loan in case of a loss to the vehicle, such as a fire in the garage.
2007-02-02 17:29:56 · answer #1 · answered by Anonymous · 1⤊ 2⤋
Listen to your Dad because HE IS RIGHT. all cars must have insurance regardless if they are parked in a garage & not being driven. What if it got stolen one day from the garage? you don't know what could happen. Anything could happen to it, regardless. If you don't keep insurance on it & something happens to it. The owner & co-signer is responsible (since the loan isn't paid off). Your stupid if you don't keep this truck insured. and YES it is the law for every vehicle to have auto insurance (full coverage) is always the best. and YES the insurance company will notify the lender who will revoke the loan & YES repossess the truck. You folks will have to pay tons of money if you are even allowed to get it back. YES they can do that. You need to listen to your parents because they seem to know it all. Please do not try to think you know more then them, because if you do what you think is right, the people in your family will end up stressing over a mistake you made.
2007-02-02 20:03:20 · answer #2 · answered by sugarBear 6 · 1⤊ 0⤋
IF he has a loan on the vehicle, he has to maintain comp/collision coverage per his contract, and YES they can come take the truck (but they won't as long as the payments are current). He does not have to maintain liability insurance. HOWEVER....if you live in a state where liability coverage is MANDATORY, and the insurance company notifies the DMV when liability coverage is cancelled....then he has to keep all coverages on the car.
The comp/collision aspect is contractual, the liability portion is state law. Your dad is right, just drop the liability to your state minimum, let the insurance company know the vehicle is being stored, and cancel any UM/UIM, Med Pay, and rental coverage that's additional on the premium.....that is, as long as the vehicle will not be driven at all, under any circumstance. If you even think you might drive it once, then leave the insurance alone.
If he's storing the vehicle, my suggestion would be to put the thing up on blocks so the tires don't wear a flat spot from not being used.
2007-02-02 18:18:50 · answer #3 · answered by bundysmom 6 · 0⤊ 0⤋
since you still have a loan on it, then it must be insured. You may be able to talk to your finance company and ask them if you could just get storage insurance on it (yes, there is such a thing as storage insurance).
If you dont insure it, and the finance company finds out, i dont think they will repo it, but they will add insurance to the cost of the truck.
So if you owe $4000, they may add $2000 to the bill for insurance on the money... now their insurance wont do anything for you, it is only on the money for them.
So like i said, talk to the finance company and tell them that the truck isnt going to be driven for 6 months, and would they allow you to just put storage insurance on it. If your home owners insurance will cover any loses, then your financers will more then likely agree to that.
2007-02-02 17:38:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Listen to your father
Removing the insurance to just fire and theft would be a breach of the loan contract. Just as your mom insisted the truck be at her house because she has an interest in the loan/vehicle, so does Toyota hence the loan contract.
Yes it's true and yes they can, it's their truck till the loan is paid off.
However - if the vehicle was owned outright and parked on private property (ie. garage, driveway) you could remove all insurance, but you would have no coverage in case of theft, so you would want to leave Fire and Theft on it. If you owned it outright but it was going to be parked on PUBLIC property (ie. street, alley) it needs liablity. This may change depending on the jurisdiction however thems the rules in my area
2007-02-03 04:09:21 · answer #5 · answered by RB 2 · 0⤊ 0⤋
No one has to have insurance, many fools walk through life without it. Having said that if a financial institution has a financial interest in your property they can, and often do, insist that that you have insurance. After all it's their money on the line, not yours. You might not be aware but there are more risks associated with a parked vehicle than one that is being driven when it comes to types of losses. Examples, theft of or theft from, vandalism, hit and run, fire, flooding, falling objects and the list goes on. Listen to your parents, this vehicle needs to be insured. Storage insurance is very inexpensive so cancel the road policy, spend the 75.00 it will cost for the storage policy for the next 6 months and rest easy knowing no one will be on the hook for a loss.
2007-02-02 19:01:07 · answer #6 · answered by patti duke 7 · 0⤊ 1⤋
To insure or not to insure is the question, right?
A vehicle must be insured at all times to protect the owner from paying out of his pocket in case of any unforeseen casualty and also to protect the interest of the lien holder from any calamity. In Texas, the law stipulates a minimum coverage of Third Party Liability. If there is a loan the lien holder requires an additional mandatory coverage to protect the lien holder's interest. If one lapses his insurance coverage the lien holder will purchase an expensive insurance in the name of the owner. The cost of the insurance will be added to the monthly amortization. A default of any kind will mean repossession of the vehicle.
Also, in Texas, one can not renew his vehicle registration and inspection sticker without an insurance.
2007-02-02 18:02:09 · answer #7 · answered by Anonymous · 1⤊ 0⤋
All I'm familiar with is Oregon. Insurance is necessary on all registered vehicles. That's the bad news. The good news is that, if the vehicle is not being used, they reduce the amount you pay by quite a bit. So it's just like a small holding fee until you decide to use the vehicle.
2007-02-02 17:44:54 · answer #8 · answered by elden w 4 · 0⤊ 0⤋
Insurance is required and that Dad is correct.
Why?
If its tagged and registered - the state wants insurance.
If it has a loan - the bank wants insurance. (It could still roll and cause damage, it could be stolen or vandalized)
And yes, if you do cancel the insurance - Toyota will know. At that point Toyota would either surcharge the payments (creating their own insurance) or take back the truck.
Even if it is in storage, wouldn't you want coverage if its stolen?
2007-02-02 20:31:48 · answer #9 · answered by PeppermintandPopcorn 3 · 0⤊ 0⤋
The vehicle doesn't need insurance if it remains on private property, though if the bank still has a lean on the vehicle the requirements of most loan agreements require that the vehicle have insurance until the time loan is paid in full. Also most states only require a car to be insured if its driven on public roads. So if your boyfriend has paid off his truck he needn't have insurance if storing it on private property
2007-02-02 17:55:53 · answer #10 · answered by wow_whataguy 2 · 0⤊ 2⤋