Selling auto's on consignment

[insurancequestion]

I have a prospect that has about 8 or so cars..he loves cars...and from time to time he will sell cars on "consignment" my question is..when he is in the process of selling cars on "consignment" should they be full insured?

With a client like this, who buys cars..may keep 1 or 2 for a couple of years..barley drives it and then sells it..is there a better way of providing him with insurance versus the traditional OR...is it just a matter of when he sells one car simply get him insured for the next? I don't want to make it harder than what it is.
Thanks

 

[fed up]

Who is the car registered to? People need a title to register a car unless it is financed. The car should be fully insured to protect the driver and owner. How does one sell a car on consignment?

 

[fed up]

Most applications for auto have a question along the lines of ' Are you the owner of the vehicle'? Whatever this concept of consignment is, I would think that this could not be answered by the consigned. Run, don't walk, away from this prospect. There is nothing but trouble ahead.

 

[insurancequestion]

sorry about that, from what I understand..he buys cars..and ther are times that he sells the..when he does sell the cars..he may have another person who keeps the car at a different location and then sales it and keeps a percentage for keeping the auto at the particular location.

 

[fed up]

sorry about that, from what I understand..he buys cars..and ther are times that he sells the..when he does sell the cars..he may have another person who keeps the car at a different location and then sales it and keeps a percentage for keeping the auto at the particular location.

He needs a commercial policy for selling the cars since he is not registering the cars in his name and isn't transferring the inventory or title to someone else

 

[adjusterjack]

I have a prospect that has about 8 or so cars..he loves cars.

This guy?

https://insurance-forums.com/community/threads/collection-of-cars.104735/#post-1382532

from time to time he will sell cars on "consignment" my question is..when he is in the process of selling cars on "consignment" should they be full insured?

Yes, absolutely yes.

With a client like this, who buys cars..may keep 1 or 2 for a couple of years..barley drives it and then sells it..is there a better way of providing him with insurance versus the traditional OR...is it just a matter of when he sells one car simply get him insured for the next?

If he drives any of them at all, they need the liability coverage. He's welcome to roll the dice on damage.

I don't want to make it harder than what it is.

If you help him cut corners you may end up with an E&O claim if he has an uninsured accident and blames you for not providing the proper coverage. That's how "harder" things get.

Run, don't walk, away from this prospect. There is nothing but trouble ahead.

Agree. The guy doesn't want to pay for insurance on 8-10 vehicles and wants an agent to finagle something so he doesn't have to.

 

[marindependent]

I would be pretty careful taking this individual on as a new client.