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If I have a bank loan for a car, and I intend on parking it in my lot for a few months without driving it, do I legally need insurance on the car?
If so, then, if I pay for a car on a credit card am I legally obligated to insure the car although it's not going to be driven?
Posted by therv5000 on 2012/06/30 19:48:14
Most financing or leasing companies require you to maintain full coverage on your vehicle, including comprehensive, collision and liability coverage, as a condition of the contract that you entered into with them. This covers their interest in the vehicle. To answer the second part of your question, again, you are required to keep your insurance policy in force. Paying by credit card doesn't help you here. What's more, insurance companies are required by law to send a notification to your finance or leasing company if you cancel your policy.
Posted by SeanGraham on 2012/07/05 15:15:10
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