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  1. #1

    Default Co-Owners of Vehicle Live in Different States

    My question involves vehicle registration or title in the state of:

    My dad and I recently purchased (financed) a car together in State A, which is my dad's state of residence. They produced a title and registered the car in State A with both my dad and I on the title using his address. I want to take the car to State B and register and insure it there. I already have an insurance policy from state B and can register it there without a problem. However, state A's law (Dad's home state) says that the car cannot be driven in that state without it being registered there, since dad is a resident of that state and is an owner of the car on the title (it doesn't matter what state he is on the title in). Both state A and state B allow the car to be "dual registered" (registered in both states at the same time. However, each state has different insurance requirements and they both require that the vehicle carry state specific insurance.

    Is there anyway around this? The only solutions appear to be 1.) Get dad off the title (which the finance company may not like) 2.) Buy two insurance policies for the same car (which seems like a chore as I doubt an agent from State A will write a policy for a car not garaged in that state) or 3.) never drive the car into state A, which prohibits me from visiting my dad.

    Before, I waste two days on the phone, does anyone know if there are insurance companies that will insure a car garaged out of the state? How much is this going to jack the premium up?

    Thanks!

  2. #2
    Join Date
    Jan 2006
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    38,867

    Default Re: Co-Owners of Vehicle Live in Different States

    what are the states involved?

  3. #3

    Default Re: Co-Owners of Vehicle Live in Different States

    Quote Quoting jk
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    what are the states involved?
    State A is MD, State B is MI. I have already researched the law in both places. MI's insurance laws are very strict under their no fault system. Any vehicle in the state for more than 30 days aggregate per calendar year MUST carry a MI no fault policy. It doesn't matter if the vehicle is owned by a non resident or if it is registered in another state. MD law is equally clear--a vehicle owned by a resident must be registered in MD in order to be operated in that state. In order to register it, you must carry a policy of liability insurance issued by a company licensed to do business in MD. The first question any insurance agent asks when attempting to buy insurance is, "where is the car garaged?". It seems unlikely that it is even possible to buy a MD liability policy for a car garaged elsewhere or is it?

  4. #4
    Join Date
    Mar 2009
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    LA LA Land
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    9,170

    Default Re: Co-Owners of Vehicle Live in Different States

    I think you're misinterpreting the language of the statutes a little bit, but I also have to say it is a fairly unique situation... Maybe a little vague as well. So help us clarify.

    (Correct me if I am wrong). You are a resident of MI, you don't reside in MD and the car is in both names but I am assuming that you are the primary driver. You mentioned visiting your Dad and that creates a dilemma whereas if you drive there to visit him, and simply because he is an MD resident and with the car being in his name, you're under the impression that it must be registered to him in MD and accordingly insured in MD as well.

    There maybe some truth to that but there are certain exceptions that most states offer to make travel in and out of, or just driving through their states, an easy un-daunting task.

    Back to the point that you are the primary driver of the car, it is in MI most of the time and therefore it must be registered in MI and to do that, you have to contact an insurer in MI to get the coverage required by law, maybe more. Once you do get it registered and insured in MI, you're done... You're good. Even if you decide to get in the car and drive it to MD next weekend, your MI registration will allow you to drive through the several states as well as drive in MD while you're visiting Dad. Your insurance, which you bought and paid for in MI is good to cover you in MI, in MD, in NJ, FL, WA, NM and ND if you decide to drive through any of those states or any other ones. In addition, with your Dad's name on the registration and title, it automatically gets included on the insurance policy.

    Here is the MD section that states you can drive a MI registered car for up to 30 days:

    § 13-402.1. Certain vehicles of nonresidents not subject to registration

    In fact, if you're there for more that 30 days, but less than a year, subsection (e) described provisions where you can obtain a permit for that purpose.

    Now, if you go and start reading: § 13-402. Vehicles subject to registration; exceptions you're gong to think everything I've said up top is wrong... But its not... Keep reading until you get to section (c) and you'll see:

    (c) Exceptions -- In general. -- Registration under this subtitle is not required for:

    (1) A vehicle that is driven on a highway:

    (i) In conformity with the provisions of this title relating to manufacturers, transporters, dealers, secured parties, owners or operators of special mobile equipment, or nonresidents; or

    In other words, it says:

    Registration under this subtitle is not required for - a vehicle that is driven on a highway - in conformity with the provisions of this title relating to nonresidents.


    Even if your Dad wants to drive it while you'r visiting him in MD, the vehicle is properly registered, both you and he have valid driver's licenses, I presume, and both of you are insured accordingly.

    Lastly, as for the question of "where is the vehicle garaged?"... The answer is, based on the presumption thast you will have the car the majority of the time, ten the answer is "it is garaged in MI".

    All of the above is based on the premise that you will have the vehicle the majority of the time. If instead, your Dad will have it the majority of the time, then you should do the opposite and you can search through MI statutes, I'm betting you will find similar procedures and regulations to what is shown for MD. (And by "the majority of the time" I mean 183 days or more of the year... (leaving 182 days where it is in MD).

    And as a start, here is one MI statute allowing your Dad, forexample to operate his vehicle in MI as long as it is properly registered in MD:

    257.243 Nonresident owner of foreign vehicle; registration; exemption; transportation for compensation; temporary permit; agent for secretary of state; pleasure vehicle; business vehicle.

    (1) A nonresident owner, except as otherwise provided in this section, owning any foreign vehicle of a type otherwise subject to registration under this act may operate or permit the operation of the vehicle within this state without registering the vehicle in, or paying any fees to, this state if the vehicle at all times when operated in this state is duly registered in, and displays upon it a valid registration certificate and registration plate or plates issued for the vehicle in the place of residence of the owner.

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