car insurance

[MrJames]

we have 2 vehicles,I am giving up my truck and reaffirming the car. I have not been driving the truck and have parked it in the garage and decided not to pay the insurance on it since I will not be driving it. I was searching the net and seen that the trustee will ask if my vehicles are insured. did I make a mistake when I stopped paying the insurance on the truck? like I said it is parked in the garage and I will not drive it...but now Im a bit worried. should I pay my insurance on it? Im a month behind on it and itll be hard to come up with the money to get caught up on the insurance payment.

[debtmonster]

Don't ever let the insurance lapse on its own. Always cancel if it you can't afford it. It can sometimes be difficult to get car insurance again if you let it lapse on its own. SR-22's are NEVER, EVER fun.

[MrJames]

ahhh ok thanks for the info!!
I went ahead and called my insurance company and canceled my policy and they said I get a refund...was a bit puzzled so I asked and it turned out I was actually 2 month ahead on my policy..so at one time or another I actually paid 3 months in advance so being 1 month behind didnt effect me at all...woohoo
I also asked them how hard it would be for me to get insurance for another vehicle after my BK and they said it would be no problem at all since I have been a good customer for several years{just trying to make me feel good so I come back to them, Im sure}

[MrJames]

almost forgot...so will it matter that the vehicle that I am giving up is not insured? now that the policy is canceled it would be illegal for me to drive it anyway. she's safely tucked away in the garage now. since my wife lost her job that frees up the car so I have been using it to get back and forth to work being that it gets 3x better MPG than my truck.

[HakunaMatata]

I don't know the answer to your question regarding the need to maintain insurance throughout BK. If you're concerned or if you may change your mind about reaffirming, you can explore Comprehensive-only storage insurance. This type of insurance is dramatically reduced as it only protects stored vehicles should some type of disaster/theft occur (ex/ flood, fire, vandalism). Another thing to consider is that credit scores are commonly factored into policy costs. While it may not be difficult obtaining insurance or continuing with your current insurer, your costs will likely increase.

Best of luck to you!

[MrJames]

thanks for the reply.
I guess my logic behind putting the truck in my garage is that if something was to happen to the truck my home owners insurance would cover it,being that the only time it will be drove is when they come to pick it up...which I assume if they are coming to pick it up that once it is in thier hands its there responsibilty..or am I wrong in thinking that? my insurance isnt bad at all{about $49 a month for full coverage + a $1k deductable} for a new full size SUV.
Ive never had a ticket nor have I ever been pulled over and Ive never been involved in an accident. so hopefully when it comes time for me to insure another vehicle my premium wont increase to much.
as far as changing my mind about reaffirming it...thats not going to happen as I owe more than it is worth and its financed at almost 20% intrest where as my car is financed at only 5% and it is worth about what we owe...plus it should be paid off in about a year
if I wasnt married our have a child Id probably give em both up and get me a scooter to get back and forth to work lol

[jribe]

we have 2 vehicles,I am giving up my truck and reaffirming the car. I have not been driving the truck and have parked it in the garage and decided not to pay the insurance on it since I will not be driving it. I was searching the net and seen that the trustee will ask if my vehicles are insured. did I make a mistake when I stopped paying the insurance on the truck? like I said it is parked in the garage and I will not drive it...but now Im a bit worried. should I pay my insurance on it? Im a month behind on it and itll be hard to come up with the money to get caught up on the insurance payment.

i did the same thing with one of our vehicles because we weren't driving it and it was in the garage. We knew it would be repoe'd - and didn't feel like paying insurance. Everything was fine. Some will say to keep it because "what if something happens" - but you're filing for BK- so if you incur extra charges they can be included anyway.

I had the insurance dropped for about 3 months before they came to get the car. I just put on my insurance that the car "was in storage" and/or "no longer in posession". I had absolutely no issues with getting new insurance on any other vehicles because of this.

[MrJames]

Thank you.