Insuring a Friend’s Car
Hi everyone,
I live in Hawaii, and my former roommate, who moved abroad about six months ago due to a family emergency, left both of his cars here. I offered to assist him with the situation.
Currently, both vehicles have expired registrations and are uninsured since their policies lapsed. One car is set to be sold, while the other will be shipped off the island. However, I need to get them registered and insured to move forward with these plans.
I hold Power of Attorney for both vehicles, but since neither car is fully paid off (they are both still on loan), I prefer not to be added to the titles to avoid being responsible for any payments if he doesn’t cover them.
My auto insurance provider has informed me that in order to insure these cars, I need to be listed on the titles, or I will have to wait for him to return to Hawaii, which seems unlikely.
Does anyone have advice or suggestions on how I can navigate this situation?
Thank you!
It’s great that you’re willing to help your former roommate with his cars. Given that you have power of attorney (POA), that provides you some legal authority, but you’ll need to navigate a few steps to get the cars registered and insured without being added to the titles.
Contact the Lender: Reach out to the banks or financial institutions holding the loans on the vehicles. Explain the situation and ask if they can allow you to register and insure the cars under your POA. Some lenders might have procedures for this, especially if you can demonstrate your authority.
Temporary Insurance: Look for insurance companies that offer temporary or short-term policies. Some firms might allow you to insure the vehicles under a POA without needing to be on the title. It may come at a slightly higher cost, but it could be a workable solution.
Registration Without Title Transfer: Check with the Hawaii DMV to see if there’s a way to register the cars using your POA without transferring the titles. They may have provisions in place for situations like yours.
Written Agreement: Consider drafting a written agreement between you and your friend that outlines terms for handling the vehicles while he’s away. This might provide some extra assurance to the insurance company.
Ask for Help: If you haven’t already, seek advice from a legal professional familiar with Hawaii’s vehicle laws. They might help navigate the specifics related to registration, insurance, and your rights under the POA.
Be sure to keep thorough documentation of all communications and agreements related to this process. Good luck!