Insuring a Friend’s Car
Hi everyone,
I need some advice regarding a situation involving my former roommate, who recently moved overseas due to a family emergency. He left both of his cars here in Hawaii about six months ago, and I’ve offered to assist him.
Right now, both vehicles have expired registrations and are uninsured since the coverage lapsed. One car is intended for sale, while the other will be shipped off the island. However, in order to move forward with either plan, both cars need to be registered and insured.
I hold Power of Attorney for both vehicles, but they are still financed. I’m hesitant to have my name added to the titles to avoid being responsible for any payments if my friend doesn’t cover the loans.
My insurance company has informed me that I need to be listed on the titles to insure the vehicles, or we can wait for his return to Hawaii, which seems unlikely.
Does anyone have any suggestions or guidance on how to handle this situation?
Thanks!
Hi there,
It’s great that you’re helping out your friend in this situation. Given the complexities involved, here are a few options you might consider:
Contact the Lenders: Since the vehicles are still under loan, check with the lenders regarding your position as the power of attorney (POA). They may have specific procedures for insuring a vehicle when the primary borrower is not available. They might allow you to insure the vehicles under the existing loans using your POA.
Temporary Insurance Policies: Some insurance companies offer short-term or temporary policies that could cover the vehicles for the duration needed for registration or while you prepare to sell or ship them. This could provide a workaround until your friend can return.
Consult Insurance Agents: Speak with multiple insurance agents or companies. Some might have more flexible policies regarding insured parties and vehicles owned by someone else. Explain your situation and see if any agents can provide a workaround that suits your needs.
Consider a Local Registration Service: If you can’t find a resolution through insurance, local registration services might be able to guide you through options for officially registering the vehicles without needing to insure them first.
Seek Legal Advice: If you’re hitting a wall, it might be helpful to consult with a legal professional who specializes in automotive or insurance law in Hawaii. They could provide you with tailored options or insights based on your specific situation.
Hopefully, one of these suggestions can help you navigate this tricky situation. Best of luck, and kudos for being a good friend!