When it comes to your auto insurance, you may think that paying your premiums on time is all it takes to stay in the company’s good graces. But an insurance policy is a contract, and that means you also have to abide by that company’s rules. In Atlanta Personal Injury Law Group – Gore LLC’s new blog series, we are taking a look at some common situations (and ultimately, bad decisions) that can potentially ruin your auto insurance coverage.
Part #6: You want to finance and insure a car for a relative who lives out of state
Insurance companies typically ask for evidence or proof that the person named on the car loan is the same as the person named on the insurance policy. But, if you are financing or insuring a car for a relative who lives out of state, it may be difficult to insure that vehicle. If you carry insurance on the vehicle without informing the insurance company about your relative and the location of the vehicle, the company will probably not cover any damages as the result of a collision. The company might even cancel the policy altogether.
Instead, you may want to contact the finance company and see if your relative can be the “named insured” on an insurance policy. The relative would then have to find an auto insurance company in their home state that would allow him or her to insure a car that they do not own. If so, then the relative would still have to list you and your finance company on the insurance as the “owner and lien holder.”
If you, or someone you know, has been injured in an accident and needs help with their personal injury case, call Atlanta Personal Injury Law Group – Gore LLC at (404) 436-1529. Stay tuned for our next installment of “10 Horrible Insurance Decisions That Can Make Auto Accidents Even Worse.”