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Is it true that you have to have insurance for your vehicle even if you're just storing it in your garage?
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Is it true that you have to have insurance for your vehicle even if you're just storing it in your garage?

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?


    




Robert D
Rating
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.


sugarBear
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.


roady42
Rating
All pretty much true.

Some places will let you drop liability if you turn in the plates, but the bank wants that thing continuously insured under collision and comp until you pay it off.


ATIJRTX
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.


Jungleboy
Rating
Yes. It can only be uninsured if you own it out right. And it is no longer registered. And of course off the road.


Lola76
Rating
Yes, as long as the car is registered, you have to have insurance. He can turn in the plates and then he won't have to insure it--but since there is a loan, he will probably have to insure it anyway. So best to leave it the way it is.


RB
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


elden w
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.


Andy W
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.


PeppermintandPopcorn
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?


mister ss
thats true, as long as their is still a loan on it it has to have full coverage, if it were paid off you could drop all the insurance except fire and theft for six months while he was gone as long as nobody was going to drive it.


tonyrss1
Rating
Yeap! You have to keep it alive. But you can sometime negotiate with the insurance company on this. I did that when I went away for overseas work for a long period of time. But again, this is case by case. You an try it here (at the bottom of the site) if you wish to consider this option. -> http://www.payamgostar.com/get-that-cheap-motors/


patti duke
Rating
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.


goldwing127959
Well it verrys from state to state but I can tell you for a fact that here in Nevada you have it insure it even if it is in storage.
I have an RV and even though I dont drive it I have to keep insurance on it.
I think it is a rip off cause it doesent move but maby 1 time a year.


callme_bruce
You MUST have insurance on a vehicle be it parked or not. If you have an outstanding loan on the vehicle. The bank via your loan agreement states you must have insurance on vehicle as long as you have a loan on it. Protects the banks interest. Say for a moment the car catches fire who pays?


answers999
Rating
In some states you have to turn in the plates to not be required to have insurance.


Heinz M
No. You might want to keep the comprehensive on it though (fire, theft, acts of god).
I have a friend who had 4 cars, and of course his wife and he could only drive 2 cars at a time.
So, he would have the insurance on those cars they drove, and when he wanted to drive one of the other cars, he would call his insurance broker and switch the insurance to the car to be driven, until he went back to the usually used car and switch the insurance back again.


fade_this_rally
Rating
Once it is insured then you have to continue insuring it until you sell...and even then I recc'd you putting the end insurance date back two days from your sales date...

Yup...............keep it insured.


wow_whataguy
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


rhsaunders
Rating
Insurance is required, but the law has nothing to do with it: the insurance is required by the lender, so that if the car is destroyed (say, the garage burns down), their equity is preserved. In many states, liability insurance is needed if the car is driven, but with the car in storage, you don't need that. But the lender wants comprehensive insurance.





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