Vehicle Insurance & Registration in US

[Blitz 3]

Hoping some of you can help me understand the way this works... I have officially made my move to California (on IR-1) and my husband and I share a 2007 KIA vehicle that we had brought down here several months ago (when I was just visiting - so it wasn't "imported" and nothing was done at the border). The vehicle has 3 more payments (til July) and then it's paid off completely. Title is in both of our names, as is our current Canadian insurance. I feel like a fool for not thinking of this earlier, but I hope/pray that our current insurance will continue to cover us even though we are both US residents right now. But we want to get it insured and registered here ASAP.

My husband is taking it to get the smog check, etc. But stupid question, can we get it insured and registered here in California eve if it's not paid off (quite yet) and the loan is with a Canadian company? And how can it be registered and insured in both of our names if I don't have my SSN yet so I therefore can't get a US drivers liscense yet? I'm sooooo confused, but what's new!?! I know I should've thought of all this earlier!

Thank you, as always!

[trailmix 77]

Well, how will they know that you have a loan on it?

As for the registration and insurance, I suppose this differs from company to company and perhaps even state to state, but you don't have to have a driver's license to own a car (so in theory you should be able to both register and insure it without one). You can't register it without having insurance first, generally - so it seems to me that shouldn't be too difficult, unless their are California specific laws that prohibit it.

First you are going to need to import the car though - but you probably already know that.

[Eenerz 0]

I can't answer all of this, however I can answer some.

Your Canadian insurance WILL NOT cover you if you have moved your residency to another country. You are only permitted 14 days to move your insurance to a company that is licensed to write in the US. If you have lived in the US for longer than 14 days, and you get into an accidend you will not be covered.

Insurance will cover you if you are travelling in the US, but not if your territory of residence has changed. So if you went for a 2 month road trip touring the country you would be fine, but not living/immigrating there.

I work for a National Canadian Insurer in claims, and although this isn't an everyday occurance there are many claims denied for exactly this reason.

Hope this helps!

Well, how will they know that you have a loan on it?

As for the registration and insurance, I suppose this differs from company to company and perhaps even state to state, but you don't have to have a driver's license to own a car (so in theory you should be able to both register and insure it without one). You can't register it without having insurance first, generally - so it seems to me that shouldn't be too difficult, unless their are California specific laws that prohibit it.

First you are going to need to import the car though - but you probably already know that.

The insurer will know as they are obligated by law to complete a leinholder search on every vehicle they insure, as leinholders are considered joint policyholders.

[Hugglebuggles 60]

But, doesn't it need to be paid off for you to import it? If you can't insure it without importing it, then in theory wouldn't they need to pay it off before they can really do anything?

I apologize if I just confused this situation, I was just reading a similar thread the other day where the OP was told they needed to pay off the car first.

[BriCar 0]

Unfortunatly I think you will have to pay off the loan, officially import the vehicle, providing it is manufactured complient to US EPA and DOT standards.

Then it could be smogged, registered and insured in California.

In the meantime it's a "visiting" car licensed and insured in Canada.

Hard part of that is now you are now a US resident.

Hopefully your Canadian insurance company will cover you anyway until all the paperwork is done.

[Dan and Ali 3]

I can't answer all of this, however I can answer some.

Your Canadian insurance WILL NOT cover you if you have moved your residency to another country. You are only permitted 14 days to move your insurance to a company that is licensed to write in the US. If you have lived in the US for longer than 14 days, and you get into an accidend you will not be covered.

Insurance will cover you if you are travelling in the US, but not if your territory of residence has changed. So if you went for a 2 month road trip touring the country you would be fine, but not living/immigrating there.

I work for a National Canadian Insurer in claims, and although this isn't an everyday occurance there are many claims denied for exactly this reason.

Hope this helps!

This is interesting to me as I just called my insurance company (Wawanesa) and my broker told me that I have 3 months to get my car registered/insured. She told me to call right before I move and the 3 months would start then.

I guess I'll have to call back ...

Edited April 7, 2010 by Dan and Ali

[Eenerz 0]

This is interesting to me as I just called my insurance company (Wawanesa) and my broker told me that I have 3 months to get my car registered/insured. She told me to call right before I move and the 3 months would start then.

I guess I'll have to call back ...

I would perhaps suggest calling the Wawanesa Claims Department and talk to an adjuster, or a examiner. Often brokers don't give out the correct information about the policy, as they are not as experienced in adjusting claims as someone in the claims department is. Insurance companies have to write and execute based on the Auto policy, and this means the rules in each province are followed in the same way by each company.

If you get the same answer from the claims adjuster, then get confirmation in writing of this statement. As a broker is not an employee of the insurance company, just an agent, you can then pursue the broker should a potential claim get denied.

That being said, some companies try to find coverage for their clients. I just wouldn't want a potential $20-30k (not even factoring in a potenital bodily injury claim) to think about while I'm driving down an interstate somewhere.

[The_Dude 1,142]

Hoping some of you can help me understand the way this works... I have officially made my move to California (on IR-1) and my husband and I share a 2007 KIA vehicle that we had brought down here several months ago (when I was just visiting - so it wasn't "imported" and nothing was done at the border). The vehicle has 3 more payments (til July) and then it's paid off completely. Title is in both of our names, as is our current Canadian insurance. I feel like a fool for not thinking of this earlier, but I hope/pray that our current insurance will continue to cover us even though we are both US residents right now. But we want to get it insured and registered here ASAP.

My husband is taking it to get the smog check, etc. But stupid question, can we get it insured and registered here in California eve if it's not paid off (quite yet) and the loan is with a Canadian company? And how can it be registered and insured in both of our names if I don't have my SSN yet so I therefore can't get a US drivers liscense yet? I'm sooooo confused, but what's new!?! I know I should've thought of all this earlier!

Thank you, as always!

First thing that you'll need to do when you move down is get a california drivers license and SSN. Some insurance companies require those to cover you. As long as you've applied for them, you can at least put "in process" when they ask for your drivers license number and SSN. I would guess they would give you a provisional insurance policy predicated upon you supplying them with those numbers upon your receipt of them.

If I understand you correctly, you purchased the car down here in the U.S.? If so, you should contact the loan company and ask them what sort of coverage they require as per the terms of the loan agreement. Loan companies that have specific insurance requirements and will need proof from your insurer. The DMV can be arseholes about things and worst case scenario, you will have to do all this in your SO name and then when you get the proper cards and documents to complete the paperwork on registration/insurance ammend it to put you on the policy/registration as well.

[Blitz 3]

I can't answer all of this, however I can answer some.

Your Canadian insurance WILL NOT cover you if you have moved your residency to another country. You are only permitted 14 days to move your insurance to a company that is licensed to write in the US. If you have lived in the US for longer than 14 days, and you get into an accidend you will not be covered.

Insurance will cover you if you are travelling in the US, but not if your territory of residence has changed. So if you went for a 2 month road trip touring the country you would be fine, but not living/immigrating there.

I work for a National Canadian Insurer in claims, and although this isn't an everyday occurance there are many claims denied for exactly this reason.

Hope this helps!

The insurer will know as they are obligated by law to complete a leinholder search on every vehicle they insure, as leinholders are considered joint policyholders.

Thank you very much, that's helpful and good to know. So is it a standard the 14-day thing? I mean, there wouldn't be some companies who allow less than 14 days for a grace period? Do I have to call my insurance company to tell them or just wait until I get the insurance transferred and then, obviously, they will know our policy with them is being cancelled? Thanks again. I prefer if we don't have to pay it off before we get a US insurer, but at least there are only about 3 months left owing on it, so that's not a big deal.

[Flames9_RN 358]

For 1 thing, one has to make sure one is talking oranges to oranges, as the rules differ from State to State. And it is something you definitely want to check out, as insurance companies are here to make $$$$ and not loose it, so if they can find away in not paying out they will!!

[zenaxe 22]

BCAA told me I'd have 30 days. I'm not there yet but it's always a concern. You can also try Allstate and Geico as they seem to be good with covering Canadian cars during the transition.

I'm wanting to sign up with USAA but when we spoke with them to get a bit more information, the agent wasn't able to tell us much and needed more time, something we didn't have when we called. So we'll call them again as we get closer. The big issue is the bridge timeframe. In other words do you have to have your new state DL and SSN before an American insurance company can insure your vehicle/s. It can take a month to get the SSN and DL once you cross.

[Blitz 3]

BCAA told me I'd have 30 days. I'm not there yet but it's always a concern. You can also try Allstate and Geico as they seem to be good with covering Canadian cars during the transition.

I'm wanting to sign up with USAA but when we spoke with them to get a bit more information, the agent wasn't able to tell us much and needed more time, something we didn't have when we called. So we'll call them again as we get closer. The big issue is the bridge timeframe. In other words do you have to have your new state DL and SSN before an American insurance company can insure your vehicle/s. It can take a month to get the SSN and DL once you cross.

Yeah, good point. I'm going tomorrow to hopefully get my California DL, but I don't expect my SSN for awhile. Hopefully since it is in my husband's name that he can at least get insurance on it and register it.

We decided just to pay off the rest of the car loan so there is no lean on it, but does anyone know where we get the certificate of Title or whatever it is called? The dealer said we wouldn't have one if it was a lease because the bank is essentially on the title too, then the bank said to ask the local registry. Gosh, as if I'm not easily confused as it is!

[Hugglebuggles 60]

When my husband paid off his car loan with GMAC they automatically mailed him the title. I'm not sure if that's a typical thing or if GMAC is somehow special in that regard...

[Dan and Ali 3]

I would perhaps suggest calling the Wawanesa Claims Department and talk to an adjuster, or a examiner. Often brokers don't give out the correct information about the policy, as they are not as experienced in adjusting claims as someone in the claims department is. Insurance companies have to write and execute based on the Auto policy, and this means the rules in each province are followed in the same way by each company.

If you get the same answer from the claims adjuster, then get confirmation in writing of this statement. As a broker is not an employee of the insurance company, just an agent, you can then pursue the broker should a potential claim get denied.

That being said, some companies try to find coverage for their clients. I just wouldn't want a potential $20-30k (not even factoring in a potenital bodily injury claim) to think about while I'm driving down an interstate somewhere.

Thanks for your help -- I am going to do just that

[Eenerz 0]

For 1 thing, one has to make sure one is talking oranges to oranges, as the rules differ from State to State. And it is something you definitely want to check out, as insurance companies are here to make $$$$ and not loose it, so if they can find away in not paying out they will!!

*sigh. I really wish that this wasn't the prevailing opinion about Insurance Companies. They are just like every other business in that they owe a duel responsibility to both stakeholders/shareholders/employees to make a profit and to their clients to provide peace of mind. Believe me it is a tightrope to walk...make money but not too much. Most insurers (American companies included) will do their best to find coverage for their clients withint he wording of the policy, even if that means bending some rules or interpretting wording differently. And policies are written by provincial and state governements.