Can you insure a vehicle you do not own/without a bill of sale?

[spikerS]

Everything seems to be checked out he’s even sent me his insurance info for the truck when he picks it up. Maybe I’m just being an over thinker here.

Odd, how did he insure it without a bill of sale? AFAIK you can't insure something you don't own...

[MR2-3SGTE]

Odd, how did he insure it without a bill of sale? AFAIK you can't insure something you don't own...

You can. I always get insurance before going to pick up a vehicle I plan to buy. Insurance just wants your money, they don't care who owns it or where it was last registered.

[bjstare]

Odd, how did he insure it without a bill of sale? AFAIK you can't insure something you don't own...

That's incorrect. You can actually insure anything you want (automotive-wise). I've insured bikes before I've owned them before.

You can't register it without a bill of sale though.

[spikerS]

That's incorrect. You can actually insure anything you want (automotive-wise). I've insured bikes before I've owned them before.

You can't register it without a bill of sale though.

so, if I know someone is a really bad driver, I could insure their vehicle, and if they wreck it, I could make a claim then and reap the payout?

[Shlade]

Odd, how did he insure it without a bill of sale? AFAIK you can't insure something you don't own...

Negative that's only in regards to registration. He wont be able to register the vehicle until I sign over a bill of sale to him. Otherwise insurance is fair game and needed before he drives anywhere.

[spikerS]

OK, i need Maskedbandit to weigh in here LOL

[MR2-3SGTE]

so, if I know someone is a really bad driver, I could insure their vehicle, and if they wreck it, I could make a claim then and reap the payout?

I beleive you need to be a registered owner to make a claim, but they're more than happy to take your payments before that. When I call, the agent always asks if I'm the registered owner or I plan to be one

[ExtraSlow]

I attempted to buy additional insurance on a rented vehicle and the feedback from masked bandit was that I cannot insure a vehicle I do not own.

[shakalaka]

I think you guys are getting confused. The simple answer to if a vehicle you don’t own can be insured by you or not is yes. Example, when I buy from dealerships locally or in B.C., before I head down I already have a insurance slip for the car that I would be buying. Then you get to the dealership and they give you a bill of sale. For example, dealerships aren’t allowed to lease you a car unless you have insurance on it. With the bill of sale and registration you go to a registry to register is it then.

Last month or so when I was looking at buying a used truck, I called my insurance company, told them about it and added the vehicle on my policy before even going out and checking it out. After seeing the vehicle and feeling like it wasn’t what I was told, I called the deal off and called the insurance company back to cancel it. All this happened on the same day so there were no charges. This is the way I’ve done pretty much every time, so you can definitely insure it all you need is the VIN number. But you can’t register it without the bill of sale.

[ExtraSlow]

Sure, you can get a policy, that's how I do it too. But that policy isn't valid until the transaction takes place. So if the car gets destroyed before you buy it, you wouldn't be able to make a claim.

At least that's my understanding of it.

[rage2]

I had insurance on my new car from April 30th. I didn't even pick it up or pay for it till mid May. For financed cars, you can't actually sign off on the car until you've proven that you have insurance on it.

Never had to make a claim during the window from when I bought insurance till I actually owned the car. Not really a point there, if the car is wrecked before you own it, ain't your problem.

[ExtraSlow]

I think I missed the context of this thread and how it split from the previous thread. To clarify my understanding

1) it's easy and common for people to get insurance on a vehicle they intend to purchase before they complete the transaction.

2) as far as I know, it's NOT possible to buy insurance on a vehicle you don't intend to own, and even if you could buy the policy, you would be unable to make a claim on a vehicle you didn't own.

[spikerS]

I can't recall how I did it with my 2012 truck, but with the 2015 Focus and the 2016 F150, I had the dealership send over the documents to Maskedbandit who then sent over pink slips, and the dealer then handled the registration, but I couldn't take either vehicle until it was all completed.

[lasimmon]

When I bought my new SUV I just got the VIN from the dealer and had insurance set up prior to going out and completing the sale.

[rage2]

I can't recall how I did it with my 2012 truck, but with the 2015 Focus and the 2016 F150, I had the dealership send over the documents to Maskedbandit who then sent over pink slips, and the dealer then handled the registration, but I couldn't take either vehicle until it was all completed.
Yea, so you basically have done the same thing that every car buyer has done.

1. Get insurance
2. Get bill of sale
3. Get registration (which requires 1 & 2)
4. Get car

Only difference is you did it all at the same time. I typically do #1 early just to get it out of the way and not get delayed if insurance is busy. I mean if Maskedbandit was on vacation, you might've had to sit around the dealership and wait.

[spikerS]

Yea, so you basically have done the same thing that every car buyer has done.

1. Get insurance
2. Get bill of sale
3. Get registration (which requires 1 & 2)
4. Get car

Only difference is you did it all at the same time. I typically do #1 early just to get it out of the way and not get delayed if insurance is busy. I mean if Maskedbandit was on vacation, you might've had to sit around the dealership and wait.

RIght, but this guy is insuring a vehicle with zero documentation or provenance (not sure that is the right word i am looking for).

and I would think that the order of operations would be (At least how I have always done it):
1) Bill of sale
2) insurance
3) registration
4) drive off

[ExtraSlow]

Don't need documentation to buy insurance. I email touchstone the VIN number and I've got a pink card with a couple hours. If I'm buying on a weekend, I run the carproof and buy the insurance on Friday.

[rage2]

RIght, but this guy is insuring a vehicle with zero documentation or provenance (not sure that is the right word i am looking for).

and I would think that the order of operations would be (At least how I have always done it):
1) Bill of sale
2) insurance
3) registration
4) drive off

Don't need documentation to buy insurance. I email touchstone the VIN number and I've got a pink card with a couple hours. If I'm buying on a weekend, I run the carproof and buy the insurance on Friday.
Yea man, all you need is a VIN. Gimme your VIN, and I'll print out pink slips for your car under my name in an hour haha. As long as I cancel within 15 days, say I change my mind on the purchase, my insurance won't even charge me.

[Kloubek]

Why would you need to own a vehicle? Insurance is insurance. It insures the vehicle, but makes no claims as to ownership.

[ercchry]

Why would you need to own a vehicle? Insurance is insurance. It insures the vehicle, but makes no claims as to ownership.

your rates have to do with driving history... why is this thread so confusing. its so simple :rofl:

[Masked Bandit]

Anyone can call their insurance guy and get any vehicle they want added to a policy and get a pink slip. Here's the catch, the insurance contract ISN'T VALID unless you own the car. So call me up, add your buddy's vehicle to your policy and we'll charge you premiums all day long, but you can't register the vehicle without the bill of sale and you can't claim on the policy either...lol. It's just a timing thing, everyone insures the vehicle before they actually own it so you have your pink card to go to the registry office with.

- - - Updated - - -


Why would you need to own a vehicle? Insurance is insurance. It insures the vehicle, but makes no claims as to ownership.

Sort of. You're right that it makes no claims to ownership but the insurance isn't actually valid unless you truly own the vehicle.

[J-hop]

Anyone can call their insurance guy and get any vehicle they want added to a policy and get a pink slip. Here's the catch, the insurance contract ISN'T VALID unless you own the car. So call me up, add your buddy's vehicle to your policy and we'll charge you premiums all day long, but you can't register the vehicle without the bill of sale and you can't claim on the policy either...lol. It's just a timing thing, everyone insures the vehicle before they actually own it so you have your pink card to go to the registry office with.

- - - Updated - - -



Sort of. You're right that it makes no claims to ownership but the insurance isn't actually valid unless you truly own the vehicle.

In your opinion what would happen if you sold a vehicle, buyer pays, you do up the bill of sale. You cancel your insurance a few hours later but in that time the buyer ran over someone on the way home and didn’t have their own insurance?

I posed this question to someone at my insurance and they said I will have some liability because technically I still had it insured and didn’t cancel the second they took possession

[bjstare]

In your opinion what would happen if you sold a vehicle, buyer pays, you do up the bill of sale. You cancel your insurance a few hours later but in that time the buyer ran over someone on the way home and didn’t have their own insurance?

I posed this question to someone at my insurance and they said I will have some liability because technically I still had it insured and didn’t cancel the second they took possession

Interesting.

I would have thought it's simple. I have a signed bill of sale, car is no longer mine. Everything is entirely out of my control, it's just a stranger driving their car; if they have no insurance, that's their problem to deal with.

[J-hop]

Interesting.

I would have thought it's simple. I have a signed bill of sale, car is no longer mine. Everything is entirely out of my control, it's just a stranger driving their car; if they have no insurance, that's their problem to deal with.

That’s what I thought but then again in Alberta a napkin can be a bill of sale so I don’t know if a BOS is really taken too seriously as a legal document. Maybe this person was wrong they weren’t an adjuster so they might not even know

[Aleks]

RIght, but this guy is insuring a vehicle with zero documentation or provenance (not sure that is the right word i am looking for).

and I would think that the order of operations would be (At least how I have always done it):
1) Bill of sale
2) insurance
3) registration
4) drive off

I change cars often and every time I call up Meloche Monnex I have 0 documentation to show I own the car when I tell them the VIN and to start the policy. It's the registration that needs to have the bill of sale and insurance.

[shakalaka]

I change cars often and every time I call up Meloche Monnex I have 0 documentation to show I own the car when I tell them the VIN and to start the policy. It's the registration that needs to have the bill of sale and insurance.

Exactly what I do.

[Masked Bandit]

In your opinion what would happen if you sold a vehicle, buyer pays, you do up the bill of sale. You cancel your insurance a few hours later but in that time the buyer ran over someone on the way home and didn’t have their own insurance?

I posed this question to someone at my insurance and they said I will have some liability because technically I still had it insured and didn’t cancel the second they took possession

Whomever you spoke to is talking out their ass plain & simple. The second there is a bill of sale it's no longer your problem. Hell, we have people that forget to call us for weeks or months after a vehicle is sold and in the end it doesn't matter. The completion of the bill of sale shows you are no longer the owner and by extension your insurance is no longer valid / applicable. It's just the reverse of what I said earlier but the same concept applies, just because you HAVE insurance doesn't mean it's valid when you don't own the vehicle. In this case you don't own the vehicle after the transaction, earlier in the thread it was about not owning the vehicle prior to the transaction. In both cases insurance was in place but in both cases it wouldn't be valid.

[Disoblige]

Whomever you spoke to is talking out their ass plain & simple. The second there is a bill of sale it's no longer your problem. Hell, we have people that forget to call us for weeks or months after a vehicle is sold and in the end it doesn't matter. The completion of the bill of sale shows you are no longer the owner and by extension your insurance is no longer valid / applicable. It's just the reverse of what I said earlier but the same concept applies, just because you HAVE insurance doesn't mean it's valid when you don't own the vehicle. In this case you don't own the vehicle after the transaction, earlier in the thread it was about not owning the vehicle prior to the transaction. In both cases insurance was in place but in both cases it wouldn't be valid.
If this is true, it might be a safe option to write the time on the bill of sale as well, in addition to the date (in the unlikely case the buyer is a jackass and tries to pull something).

[Masked Bandit]

If this is true, it might be a safe option to write the time on the bill of sale as well, in addition to the date (in the unlikely case the buyer is a jackass and tries to pull something).

Not the worst idea in the world.

[ercchry]

If this is true, it might be a safe option to write the time on the bill of sale as well, in addition to the date (in the unlikely case the buyer is a jackass and tries to pull something).

What would they pull? It’s not like they’re going to drive off with your insurance and registration

[J-hop]

Whomever you spoke to is talking out their ass plain & simple. The second there is a bill of sale it's no longer your problem. Hell, we have people that forget to call us for weeks or months after a vehicle is sold and in the end it doesn't matter. The completion of the bill of sale shows you are no longer the owner and by extension your insurance is no longer valid / applicable. It's just the reverse of what I said earlier but the same concept applies, just because you HAVE insurance doesn't mean it's valid when you don't own the vehicle. In this case you don't own the vehicle after the transaction, earlier in the thread it was about not owning the vehicle prior to the transaction. In both cases insurance was in place but in both cases it wouldn't be valid.

That’s good to know. No offence but I always think the worst wth insurance companies.