I am planning on storing my itr for 6 months, i would like to pay storage insurance instead of full coverage for obvoius reasons...the problem is I still owe ~10,000 bucks on my loan..will the credit union allow me to switch my insurence?

 

Just don't tell them and hope you dont get caught. Make sure you are still covered for theft or hazard.

 

I don't see a problem, When you talk to your Ins broker/ agent ask them whats the details- You might have to take your plates off and re register it when the storage period is over.

 

insurance agent told me that 90% of the time they don't allow that change--the credit union still owes it..

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by itr#332 &raquo;</TD></TR><TR><TD CLASS="quote"> ... the problem is I still owe ~10,000 bucks on my loan..will the credit union allow me to switch my insurence? </TD></TR></TABLE>

Read your loan agreement, but generally I don't think so.

 

AFAIK, if you don't have the title, then your R has to be fully insured. 'cuz, if it gets stolen, you will have to pay out of your pocket. (insurance company will not pay)

 

My ITR was in storage for a year while I was stationed in Korea and it's been in storage the past 8 months while I 've been in Iraq. I never carried the maximum coverage while my car was in storage. I only carried comprehensive with a very low deductible. I contacted the bank my car was financed through and they told me as long as the car was not being driven this was perfectly fine. Thank god because I just can't see paying full coverage on the R while I am not driving it.

 

I am an agent for State Farm and if it is for a period of 6 months or less they usually dont find out. Unless you come up for renewal. At every renewal we send out proof of insurance to all lein holders. Or you can do what is called withdraw from use, which covers the car if it is not running or if it is in storage. It is 25%of you 6 month premium. You may want to ask your agent about that.

Bonnie

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bonnieornelas &raquo;</TD></TR><TR><TD CLASS="quote"> Or you can do what is called withdraw from use, which covers the car if it is not running or if it is in storage. </TD></TR></TABLE>

But would that be considered full coverage, which is what loan agreements usually require?

 

Yes. You can leave full coverage and pay 25% (then withdraw from use)which would still be good for the loan.

 

I'm not sure of the answer, but... think about the different portions of your insurance:

1. COMPREHENSIVE - This protects the value of your car against non-collision losses, such as vandalism, theft, fire, etc. You don't need separate "storage insurance"; you just need to make sure your comprehensive coverage is still in force.

2. LIABILITY - This is the most expensive part of your insurance. It protects YOU from being sued if your car causes damage or (especially) injury to others.

3. COLLISION - This protects the value of your car in case it is in an accident.

In the winter, when my other car is being stored, the "good neighbor" folks at my insurance company are more than happy to suspend the liability and collision coverage on my policy for up to six months. I leave the comprehensive portion in effect. This is the "withdraw from use" status that Bonnie mentions. (Thanks, Bonnie - for your input and for the great service from all your company's agents, including mine!)

If you have financing on your car, I would guess that the financing folks only care about protecting the value of the collateral on their loan. In other words, I highly doubt that they care if you turn off the liability portion of your coverage, because it only protects you, not them. So you should be able to turn off the liability portion without them objecting. Maybe not the collision part, but certainly the liability portion - no? On my policy, the liability part is something like 4-5 times the cost of the collision part, so turning off the liability part only would still give me at least 80 percent of the savings. And, if they let you also turn off the collision part by changing it to "withdraw from use" status, so much the better.

Hope that makes sense.

 

<TABLE WIDTH="90%" CELLSPACING=0 CELLPADDING=0 ALIGN=CENTER><TR><TD>Quote, originally posted by bonnieornelas &raquo;</TD></TR><TR><TD CLASS="quote">Or you can do what is called withdraw from use, which covers the car if it is not running or if it is in storage. It is 25%of you 6 month premium. You may want to ask your agent about that.

Bonnie</TD></TR></TABLE>

Thanks, Bonnie! Your information is greatly appreciated! Time to call my insurance agent!

 

thanx people