Insurance Question

[Ric]

Wondering if one can get a 'storage policy" on a vehicle that is still being financed? I am pretty sure just dropping the insurance results in the lender being notified. The car has been refinanced a couple of times (too often), and it broke down and needs a new engine. Son in law has an extra vehicle that he is selling to my son, so they won't be carless, but I need to know what to tell him regarding the other car...

[bodine]

If the lender gets a cancellation, they will slap their own expensive coverage on it. I would talk to an insurance agent to see what they have that fits your situation. But the lender's insurance is the worst possible insurance, as it is written for the lowest common denominator and it includes a very hefty profit margin for the lender.

It has been 20 years since I made loans, and I have forgotten lots of stuff, and lots of stuff has changed. But your lender probably has some fine print that says you will keep the vehicle in operable / serviceable condition. As long as you keep up the payments and don't tell them about the current status of the car, you should be ok. But that is my own opinion, based on what was happening 20 years ago...

[Ric]

Thanks!!

[John in Plano]

Raising the deductible should save a few bucks and no risk with a parked car.

[crocmommy]

I remember Clark Howard talking about buying auto insurance policies based on mileage. You might check and see if these policies actually exist.

[John in Plano]

I remember Clark Howard talking about buying auto insurance policies based on mileage. You might check and see if these policies actually exist.

My parents have that type coverage, iirc every 3 months their agent asks for the odometer reading on both cars. One has been driven once in the last 3 or so years.