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Old 09-06-2007, 03:30 PM   #4
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Originally Posted by TM3 View Post
What's up FF peeps? Quick question for anyone in the 'know'.....

I know that when you have a lien on your vehicle, they require you to carry full coverage on the car. My question is often does the lien holder check with the insurance company to see if the vehicle is still insured? Say if I went half a month without insurance on the car, how would they find out? Would they find out? Would my insurance company tell the lien holder once I dropped the car? I've kind of been curious about this for a while.

NOTE: This is more of a hypothetical question. I am NOT planning on dropping the insurance on one of my cars while I still have it. I don't want anyone to think I'm trying to do anything (illegal) driving around without insurance. I've got two other Foci, and I only drive one of them. The other two just sit and collect dust, aside from the occasional start-up to get the juices flowing, hence the reason for my curiosity.
The insurance company informs the MDV/MVA/whatever you call it there, once it is in their computer, the lien holder can see it whenever they want. Your problem wont only be with the lien olde,r it will be with the DMV, states have a retty strict stance for insuring vehicles that aren't paid off, no state believes you will not drive a car your paying off, if your owe money on it, you are required to have insurance, eventually you will get a ltter from the DMV requesting that you provide proof of insurance that starts on the day your last policy expired, I know here if ther eis no lapse in coverage, 0 in fines, if it is between 1 and 30 days, 150 in fines, and it starts to get pretty hefty after that, don't forget that if your out driving and a cop runs your tags and it comes back w/o insurance, he may confiscate your tags and impound your car too. So basically even if the car is just going to sit there, It's still illegal, and you will be subject to a fine, at least based on my knowledge, and thats just from the DMA, I don't even want to know what would happen if the lien holder found out, but I can't imagine it would be more than a month or two before you came outside and found that your car wasn't there.
2005 Toreador Red ZX3 5-spd
Steeda S.R.I, 2.25" MBRP, Steeda STS & Knob, Niteshaded tails/sides, 20% Tint, Black/Red SVT Seats, 50 Shot
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