In Reply to: Re: Anyone in North Carolina to answer my question posted by VJ on June 16, 2000 at 11:53:52:
Think about what he is suggesting! The vehicle will be operated in the state of New York where there is a higher likelihood of accident of theft based on findings of a national insurance program where they determine rates for different areas of the country.
Would you insure a homeowner against hurricane or flood damage at Wyoming rates when the property is actually located on the outer banks of North Carolina which is far, far more susceptible to hurricanes or flooding than is anywhere in the state of Wyoming? It's the same situation.
Personally, I can't imagine any insurance agent recommending such an idea. For one thing, though bottom on the list of why he shouldn't, is that the insurance representative would not reap the benefits of any premiums for your insurance coverage if the vehicle is insured in another state. It makes no sense why he would suggest such an idea.
I think it is a bad idea myself. I would always be concerned that if something happened where there was a devastating castastrophe envolving major injuries or death and/or huge property damages, the insurance company would claim fraud by deception and therefore fight the case (and you) so as not to pay for the damages. Something like that could be tied up in courts for years!
Don't think that if something major happened which could case a large payout of money to cover property damages or injury/death lawsuits that insurance investigators wouldn't interview all your relatives, friends, neighbors, peers, fellow students and business associates. They would easily find that you were are permanent resident of New York state and purposely carried insurance on the vehicle in another state to reduce your premium on insurance coverage.
If you still aren't sure I suggest you call the home office of Allstate Insurance Company or any other insurance company and ask the question. It makes no difference if the insurance company is a national company or not, all locations have a particular rate based on accident liklihood and theft. I think we both know what the answer will be from the insurance companies.
: Yeah i know, but an ALLSTATE representative suggested i could do this andtehn if anything happened while i was in NY i can say im visiting my parents. they said this is ok as long as the insurance company is national.
: : You will have to have the owner (your dad) sell or give the vehicle to your uncle (permanent North Carolina resident) and of course transfer its ownership by transfering the title.
: : The sell will require that your uncle pay NC sales tax on the current value of the vehicle. This value is the current value of the vehicle as set by the NC DOT. It makes no difference how much the vehicle is sold for or if it was even given away. This value is available at each DOT's office. You must pay the sales tax as well as for the title transfer and the NC license plate at one time for the transaction to be processed.
: : The NC sales tax is 3% of the vehicle's value as set by the NC DOT with a $1,500 maximum limit.
: : NC county as well as city (if applicable) property tax will have to be paid yearly by the owner of the vehicle as well and is billed seperately by the municipal goverment of that county which the owner resides.
: : I hope this is helpful.
: : You may want to really think about this before doing it! Just one situation that requires the insurance company or their independent agent to investigate why the vehicle was being used in another state could cause you a lot of headaches!
: : Bob ///M3 (Winston-Salem, NC)
: : : I live in NY and want to register my car in NC. the car is registered to my dad and the title is in his name.
: : : The goal of all tih sis to excape NY's high insurance premiums. i have an uncle living in NC to use as resident, but what else would i have to do?? do i have to transfer teh title to myself? does this involve paying sales tax on teh car? or can i transfer it to my uncle and designate myself as primary driver on the car? can someone please help me? thanks
: : : VJ
: : : [email protected]