Auto Insurance Claims: Owner financing a car, car owner, insurance company

Question
If I sold a car & owner financed it, but still owed a bank note, & have to carry insurance on that vehicle for the bank, will my insurance pay a claim if the car they wreck that vehicle?

Answer
Hello,

Although this may seem like a great deal to you by getting rid of the car, don't do it. You are opening yourself up to all sorts of liability.

OK, you are going to finance where they pay you monthly payments. What if they quit paying? What if they blow the engine up? You will still owe the bank and have nothing to show for it.

As for the insurance, this could be construed by the insurance company as fraud.

Have you even asked the bank if they will let you assume responsibility of letting someone they know nothing about make payments? Most likely not.

This may seem like a good idea to get you off the responsibility, however I have NEVER seen these situations turn out right. Don't do it!'



Rob