Need VERY short-term basic auto liability policy


#1

I won an Acadia Denali and am selling to the dealer. The car-giving people insist that the car be registered (they’re covering the costs) which requires me to have insurance for the few minutes or hour I’ll have title. I need a one-week policy and so far can only find 6 months. I’m still making calls to agents & brokers but it doesn’t look good. Do you know how I can find what I need? The car is coming to the showroom from the manufacturer. I may not even see it (it may not have been delivered to the showroom by the time I go in to sign papers). In any case, I will not drive it at all.


#2

Frankly, I’d just register it. Don’t worry about insurance. Most states have language saying you promise to carry insurance on it if you drive it while registered in the state. Since you won’t be doing that, register it, and then immediately sign the title over to the dealership.


#3

Why Can’t You Go To Your Regular Agent, Start A Year Or 6-Month Policy And Then Cancel It And Get A Refund After You’re All Squared Away ?

CSA


#4

Exactly!


#5

Shadowfax, In My State No Proof Of Insurance Certificate = No Registration.

CSA


#6

Have you looked at the tax implications here? It’s possible you may have to pay income tax on both the vehicle and the sale of the vehicle. Talk to an accountant.

Also, and more importantly, how are you going to register a car to which you don’t have title? Once you have title, how can they compel you to do anything at all with your own property?


#7

Can’t the dealership give you a temporary registration that will satisfy the prize committee? Along the U.S. Border with Mexico, they sell U.S. insurance by the day or week…$7/day for minimum liability…

http://www.computerquoteinsurance.com/content.php?nav=71

Who is going to pay the sales tax?


#8

CSA: If the OP’s state is like that (mine isn’t) then he should follow your advice.


#9

Same here as CSA described: Texas

Edit: Oh, and there are lots of places around me that sell insurance by the month.


#10

I’m in NYS, which also requires proof of insurance in order to register. Further requires taking title in order to sell to dealer or anyone else, so I’ll be doing that. The prize “official rules” also require that I take title and register, they prohibit other methods. The prize-givers are covering tax, title, licensing.

Already talked to an accountant and the IRS. Sure do have to pay income tax, but only on the amount I actually receive as long as I present the documentation.

The border insurance sounds interesting though weird. I’ll check the website and run it by NYS DMV.

As a NYC lifer, I’ve never owned a car, so I don’t have an auto policy. Will look into cancellation policies. Also, I now recall hearing many instances of policies being cancelled due to premiums not being paid. Wouldn’t this have a negative affect on one’s credit report or something else?


#11

Thanks for fleshing it out.

Again, if you don’t have the title, how can you register it? If you do have the title, how can anyone dictate to you what to do with your property?

There’s a difference between cancelling a policy and failing to pay premiums.

Again, if you don’t have the title, how can you register it? If you do have the title, how can anyone dictate to you what to do with your property?


#12

Then how do you register a new car, when the bank holds the title?

There’s always a way…


#13

If you finance a car the bank ALWAYS holds the title. Since MOST people DON’T buy cash I’m sure people have found a way how to register a car without the title.

Many stats (like NY) you need a special NY State form that is issued by the insurance company proving that you have insurance.


#14

No insurance agent is going to want to sell you short term insurance, but every insurance agent will prorate your insurance after you no longer need it. In this case, asking for forgiveness is a lot easier than asking for permission. Just insure the car, and then after it is sold, tell your insurance agent you no longer own it.


#15

Thanks, Whitey. Mona Lisa? Friends and others at other online venues have told me the same. I’m about to call a few of the insurers again to verify their cancellation policies and order something today. Yeah, I’ve asked about insurance in a number of places. It’s my own peace that I disturb, but I’m calmed now, ready to let winning the car be fun only and then recede into the past.


#16

I’m completely in agreement with Whitey. There’s usually no problem getting a refund if you cancel the policy. I’d get the least possible coverage, do the deal, then maybe wait until the policy comes in the mail in a week or so, call customer service and tell them you decided you do not want the insurance because you decided you really did not want the car. Ask for a refund of the unused term. If there is any resistance, write it in a letter to the company. A written request is the strongest way, but probably will not be necessary.


#17

It’s Like Déjà Vu, All Over Again.
CSA


#18

DTP, an expert recently came out with findings that indicate the person who posed for the Mona Lisa was actually one of Leonardo da Vinci’s male assistants. I guess I was ahead of the game when I put my face on the painting!


#19

" chaissos 6:26AM Report
Then how do you register a new car, when the bank holds the title?
"

Either the bank gives you a paper that the state will accept to let you register the car, or the bank has a lien against the car and you have the title, or you signed a loan document that says the car is collateral for the loan and you have the title, or the bank registers the car.

I’ve never financed a car so I’ve never seen what the title to such a car looks like.

If your financed car is stolen, who files the police report, you or the bank?


#20

Actually (in 4 states I’m sure of), You don’t need anything at all to insure a car, except the VIN (which of course will also have vehicle details, but they’d rather ask you). Once you have that bit of paper, you get a temporary registration right at the dealership. I know we’ve all seen temporary plates. That’s all he needs. I’ve never had to do more than that for my new vehicles. Like I said, 4 states: FL, TX, NH and ND.

This whole thread is really silly, and the dealer is giving him the run around so he can make a nice profit from doing a bit of paperwork. I don’t begrudge them some profit, but this has been really long for almost no purpose. All new vehicles change hands at least twice: manufacturer to the dealer, then once to the first owner. If he has to hang on to it long enough to wait for plates, then there may be a further charge for the dealer storing it. After all this, there will be a third owner change, back to the dealer. Those will show on any carfax (it’s about the only thing you can guarantee on that particular useless report).

In this case, he will actually get the title, since there’s no bank financing. Normally you only get the registration, and you listed as the owner. There’s nothing else until it’s paid off. You literally have nothing except a loan statement.

After that, with 0 miles on the odometer, and it never having been driven, it will still sell as new. Those changes of title will be put down to a failed sale or something else, and no one will be the wiser.

It’s unusual, though, for them to only require registration. Normally they want it insured, registered and driven for a year before you can sell it. That way, they can get advertising out of it.