Is there any obligation for a car dealer or bank to ensure that a new vehicle being financed is insured before being driven off the lot?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is there any obligation for a car dealer or bank to ensure that a new vehicle being financed is insured before being driven off the lot?
Asked on December 15, 2013 under Accident Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
No: the insurance obligation is on the car's new owner, to make sure that he or she has insurance before driving. Neither the seller nor the company financing the car (i.e. the bank) is obligated in this regard.
And as for the buyer: not only is the law, but it's a *very* good idea to not drive without insurance; getting into an accident with insurance can result in financial ruin.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.