Car Insurance Question

[WingNut]

Leased vehicle using mom as Lessee and myself as Co-Lessee. Did this in order to score a killer deal. Mom lives out of state so it is registered there. I put the Edge on my insurance policy which also has my 2nd vehicle (titled and registered in my state). Did some changes to my policy online last night and noticed that the "Registered" state on the Edge says VA when it should say MI. So I go to make the change which produces an error saying a MI policy would have to be written up.

 

So what are my options here? Is the car technically covered? Or would the insurance company try to weasel out of any coverage if something did happen.

 

I was thinking, if needed, I just do a lease transfer solely in to my name and having it registered here (which would tack a few thousand on in the long run because of personal property tax).

Edited December 3, 2015 by WingNut

[akirby]

Policies are state specific so a separate policy is probably required. I would call the insurance company and ask them how to handle it - I'm sure it comes up frequently. Or they may have it in their FAQs already.

[WingNut]

Policies are state specific so a separate policy is probably required. I would call the insurance company and ask them how to handle it - I'm sure it comes up frequently. Or they may have it in their FAQs already.

 

I'm trying not to red-flag my policy at this point. If I have to start a 2nd policy, that can get pricey for me since I wouldn't get the multi-car discount.

[akirby]

They would probably still give you the discount but you'd have to talk to an agent to get that done.

[cab2g]

just call and confirm coverage. they may have just stated that the registered state was VA because the system can't handle the primary location the vehicle is located to be any different from the state it is registered in. Just get whatever they say regarding coverage in writing. If your car is located in VA, your coverage needs to be for VA. If your car is located in MI, your coverage needs to be in MI. Where the vehicle is registered is a tax issue, not an insurance issue.

[WingNut]

just call and confirm coverage. they may have just stated that the registered state was VA because the system can't handle the primary location the vehicle is located to be any different from the state it is registered in. Just get whatever they say regarding coverage in writing. If your car is located in VA, your coverage needs to be for VA. If your car is located in MI, your coverage needs to be in MI. Where the vehicle is registered is a tax issue, not an insurance issue.

This is what I got back from insurance when I tried to change it online:

 

"Please note that, in order to list your vehicles as being registered in Michigan, your policy must be rated for the state of Michigan. If you have recently moved from Michigan, you will need to register your vehicle in your new state. Most states allow 30 days from the date you first move to the state to register your vehicles."

[WingNut]

I called Progressive and they said I'd have to have 2 policies that would end up giving me a discount. The pricing was pretty darn high. Not so much for the Mustang here in VA (that was comparable to what I pay now). But for the Edge it was pretty damn $$$ to have a Michigan policy.

[akirby]

Insurance licensing is different state to state as are state laws, thus the need for separate policies.

[WingNut]

Insurance licensing is different state to state as are state laws, thus the need for separate policies.

 

Yup. I'm going to just go through with a transfer and make it right. Just the thought of going to the VA DMV makes me want to die.

[cab2g]

 

Yup. I'm going to just go through with a transfer and make it right. Just the thought of going to the VA DMV makes me want to die.

I have a co-worker that transferred titles while under lease, additional documentation is required than your standard title transfer when financed or owned outright because the lease company owns the title, not you personally. I'd call your lease company before going to the DMV to get the proper paperwork for the title transfer.

[WingNut]

I have a co-worker that transferred titles while under lease, additional documentation is required than your standard title transfer when financed or owned outright because the lease company owns the title, not you personally. I'd call your lease company before going to the DMV to get the proper paperwork for the title transfer.

 

Oh I know. I contacted Ford Credit first and they have sent me the proper paperwork. I need to fill out their paperwork and submit for approval. Once approved, I have to submit proof of insurance. Then the lease is transferred to me. I then have to register the vehicle in VA which I've already contacted the DMV and was told exactly what to bring with me. I'll have to get an inspection/emissions done first though which I'll have done at the dealer when I'm in there soon.

 

The biggest hurdle will be sales tax. VA will exempt you from paying sales tax if you have purchased/leased the vehicle in the past 12 months and have proof you paid sales tax in another state. I can do that with the original paperwork for the lease. And I can provide a registration card from Michigan. I think i should be safe.