lots of talk on this lately....

I'm leasing an ITR and I'm putting it away for winter however lease company says I must keep coverage even if I put it away (full coverage). I'm paying 375 a month so this money could go to modz etc... anyone figure out a way around this, short of buying the car outright?

 

you took the loan, you play by their rules.

 

Even if you just had a loan, you'd still need insurance.

 

I was in the same boat... as long as it's leased you need full coverage. No way around it. I tried and tried and tried.

 

Just get some rag-tag fly by night insurance company if you know the car will be safe, OR-- If you are insuring another car(with a reputable ins company) they should give you a good multi-car discount. My ins company insured my second car(a turbo DSM) for like 50 bucks a month, at any rate there is no way you should be paying 300+ a month.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by MR5sARECOOL &raquo;</TD></TR><TR><TD CLASS="quote">Even if you just had a loan, you'd still need insurance.</TD></TR></TABLE>

That's not true. Loans don't necessarily require insurance. However, keep in mind that the question is not whether insurance is needed, but what kind of insurance.

There are three major parts to most auto insurance policies:

Liability covers you for damage to others and their property caused by your car. For example, if your car is in an accident, and there is damage to another car and/or an injury to one of its occupants, this part of the policy provides coverage (payment). This is usually the most expensive part of the policy.

Collision covers your car for damage that it incurs in an accident.

Comprehensive covers your car for damage from other causes, including theft, fire, theft, vandalism, theft , etc.

There are other coverages, too, but these are the major ones, and are sufficient illustrations for this discussion.

I have a car that I store during the winter. It sits in a garage for 4-6 months and never goes anywhere. So, during the winter, I "suspend coverage" because the car is not in operation. This means that I keep the comprehensive portion of the policy in effect, but I turn off the liability and collision portions. Since the car stays in the garage, there is no chance I would need them. Since I'm only paying for the comprehensive part of the policy, doing this saves me about 80 percent on my insurance (yes, my premiums are about one fifth of what they are the rest of the year).

The problem arises with leased cars, because many leasing companies don't let you suspend coverage (as defined above). When you own the car, you can make this decision for yourself.

 

whoa....that is supposed to say 375$ a month right?

 

$4500...
Now that's cheap for Brooklyn!!!
also don't forget that he might have a few infractions on his license...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by nsxtasy &raquo;</TD></TR><TR><TD CLASS="quote">That's not true. Loans don't necessarily require insurance. However, keep in mind that the question is not whether insurance is needed, but what kind of insurance.</TD></TR></TABLE>

If your car is held by a lein in the state of VA, you are required to have full (liability, comprehensive, collision) coverage. State law...

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by .RJ &raquo;</TD></TR><TR><TD CLASS="quote">If your car is held by a lein in the state of VA, you are required to have full (liability, comprehensive, collision) coverage. State law... </TD></TR></TABLE>

This may be true in some states (hence the previous use of the word "necessarily"), not necessarily others (there it is again ). It also may be required by the specific financial institution issuing the loan. So you'll need to check around to find out what the requirements are in your particular situation.

If you are going to store your car anyway, it's worth looking into; it can save you a bundle...

 

o thats 375 Canadian....still a lot though. I have no infractions @ all on my license . I talked to my insurance company and they said I could suspend the policy....however I have to continue making payments in the mean time. I get about 90% of it back in the form of a credit when I put my car back on the road in the spring.....so thx for that suggestion

Tegs especially ITRs get ripped off all the time. (Toronto, Canada) where I'm from so the theft portion of my insurance is HUGE. I actually get a huge discount due to my employer. Another guy I know my age pays 800 CAD/month so i don't feel too bad.

 

My brother in law has his R parked indefinately. We both go through Farmers Ins(Washington State) and he was able to reduce his insurance to $35 a month. It's like a sort of standby. It ONLY covers the vehicle (IN FULL) while it is at your garaging residence (place where you tell your insurance company it will be parked at night).

Works great. O-and his loan is with Bank of America and this satisfies the loan insurance requirements. It is my belief that state laws can only REQUIRE full coverage insurance if the car is driven with a lein. Even then I think it is up to the finicial instituition what requirements are being set.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by LAQUALO69 &raquo;</TD></TR><TR><TD CLASS="quote">only use fire and theft</TD></TR></TABLE>

Yes, that's what the comprehensive portion of the policy covers.