Do you need insurance to buy a car and ship it out of the country?

[blinelaxd27]

Hey Guys,

I have a friend who is buying 2 brand new cars from a Dodge dealership and wants to ship them out of the country.

The dealership is telling him that he needs to have insurance even though a truck is picked them up and taking them right to the port to be shipped, they are trying to charge him 5k for this.

Seems like he is getting ripped off.

 

[13COBRA]

Hey Guys,

I have a friend who is buying 2 brand new cars from a Dodge dealership and wants to ship them out of the country.

The dealership is telling him that he needs to have insurance even though a truck is picked them up and taking them right to the port to be shipped, they are trying to charge him 5k for this.

Seems like he is getting ripped off.

Is he paying cash or financing?

 

[blinelaxd27]

paying cash.

 

[13COBRA]

paying cash.

Just have him open up two liability policies.

If the dealership is supplying temporary license plates, he needs to have insurance.

 

[blinelaxd27]

he does not have a US drivers licence, he does not want temp plates, just wants a truck to pick up the cars and bring them to port to be shipped.

is that not possible to do? dealership is saying that they won't sell the cars uninsured even if they are getting put right on a truck to be shipped overseas even if paid in cash.

does that make sense?

 

[RI-SVT]

That's BS, I own a auto transport business, paying cash=no insurance needed, I've dealt with this before, It's called a "blind shipment" dealer lingo, dealer looks the other way, dealer knows these cars in another country, the value can almost double. vehicles not being registered, so no insurance needed, truck has cargo insurance and a 1 mil in liability too. don't see the issue.

 

[oldmodman]

No. Insurance is not "required".

But he is crazy if he doesn't have a theft and damage policy that covers the transport and shipping of the cars. Otherwise all damage or loss comes out of his pocket.

 

[Weather Man]

Dealership scam.

 

[LS2GTO]

Can't he get insurance, show the dealership the proof and then the moment the cars hit the truck he calls his insurance and cancels? Worst case he'll have to pay for 1 day's worth of insurance.

Most companies can put a car on a policy the day of and fax over proof right away. And the same goes with cancelling, they can end a policy on the spot and what you owe is the prorated amount based on the end of that day.

 

[13COBRA]

Oh, so he's not going to register them, then ship them?

That's against the law. The $5k the dealership is wanting might cover the taxes and registration.

 

[blinelaxd27]

yea not registering just shipping, didn't realize that is against the law. they are charging him MA sales tax so he is not trying to not pay taxes on them.

The dealership found an insurance agent for him who will give him insurance for like 8k and then refund half after he cancels in 1 day. haha this all sounds awful.

 

[13COBRA]

yea not registering just shipping, didn't realize that is against the law. they are charging him MA sales tax so he is not trying to not pay taxes on them.

The dealership found an insurance agent for him who will give him insurance for like 8k and then refund half after he cancels in 1 day. haha this all sounds awful.

Sounds like a legal nightmare.