Question about getting a used car insured

LDSM · 01-31-2013, 07:47 AM

A friend sold his fully paid off car to a buyer.

Now the buyer is having trouble with his insurance and is asking for the letter from the bank stating that the car is fully paid off.
My friend doesn't have this letter.

I was under the impression if you have the title to the car, which should show that you have full ownership, this would be satisfactory to the insurance co?

son_of_siggy · 01-31-2013, 08:52 AM

It should be. Or the insurance company should just be able to run a title check and see the title/car has no lien on it.

Perhaps they want to ensure the new buyer doesn't owe the previous owner anything?

Car shouldn't need to be paid off to insure, though it should be cheaper paid off to insure. Worst case he can get the policy going, and have them recalculate once he gets the title changed fully into his name.

01-31-2013, 07:47 AM	#1
LDSM Captain 344 Rep 686 Posts Drives: ... Join Date: Jun 2012 Location: ... iTrader: (0)	Question about getting a used car insured A friend sold his fully paid off car to a buyer. Now the buyer is having trouble with his insurance and is asking for the letter from the bank stating that the car is fully paid off. My friend doesn't have this letter. I was under the impression if you have the title to the car, which should show that you have full ownership, this would be satisfactory to the insurance co?
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01-31-2013, 08:52 AM	#2
son_of_siggy Lieutenant 15 Rep 432 Posts Drives: CTS-V Join Date: Jul 2011 Location: United States iTrader: (0)	It should be. Or the insurance company should just be able to run a title check and see the title/car has no lien on it. Perhaps they want to ensure the new buyer doesn't owe the previous owner anything? Car shouldn't need to be paid off to insure, though it should be cheaper paid off to insure. Worst case he can get the policy going, and have them recalculate once he gets the title changed fully into his name.
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