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?

UPDATED: Sep 30, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Sep 30, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 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.

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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption