If you owe less than 3000 on a vehicle and are not driving it only use to pull horses do I need insurance on it?

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If you owe less than 3000 on a vehicle and are not driving it only use to pull horses do I need insurance on it?

My truck is a 2004 Chevy Silverado it’s financed through my credit union. I was always told by my previous insurance company if I owe less than $3,000 it can be in storage. My credit union is stating I still need to have full coverage on it.

Asked on December 23, 2016 under Insurance Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, you need the insurance on it if the terms under which you financed it require insurance--which they likely do. When you take out a loan, you agree to whatever was required by the loan application and/or the loan agreement; if you do not comply with the terms of the loan, you are in breach of contract and they could require you repay the entire loan all at once. So check your loan documents to see if they require you to have insurance.


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