Kathy Cormier: Is your customer trying to do a transfer and the dealer told them they needed a new plate?? Or is this an additional vehicle??
As far as Temporary Plates…Massachusetts does not recognize our residents driving a vehicle with out-of-state temporary plates…they would be considered unregistered. I’ve attached a notice we received from the RMV on this topic.
In my experience when out of state dealers use these type of registry service, it can take a month or more for the paperwork to be processed and get back to the customer. This is problematic for the client as they are driving around unregistered and at some point the company could cancel the vehicle off the policy because it is not registered and now would be uninsured as well. It would be best for the client to have the dealer send the paperwork to you for processing before he leaves to pick up the vehicle. This way, there is no question about insurance or registration.
I would think while it is being transported that the transportation company would cover the vehicle during transit with some type of cargo coverage??
I’m sending this to Irene Morrill, VP of Technical Affairs for here input…Irene?
Agent: This is a replacement vehicle so originally I told the client to just transfer the plates. Then this whole thing came about of it being out of state and the dealer told her it had to be new plates and that they were responsible for the insurance on the vehicle while it was being transported up here from PA…as I thought the dealer should have Motor truck cargo insurance as well and the dealer said no it is on the clients insurance if something happened.
I told the client it would be best to have us do the RMV1 etc then fedx it to the dealer to sign and have them FedX it back to us w/title, bill of sale etc so we can go to RMV transfer the plate and they could at least have the plate once the vehicle arrives here on the flatbed.….
The dealer said they do it all the time in MA and I said that doesn’t mean it is valid in MA for the client to drive around with that plate. Plus they need to have the vehicle inspected within 7 days…right?
It seems to be a bit of a mess…
What do you think?
Kathy Cormier: The dealer is completely wrong in this situation. Dealers do these types of things all the time, that is true, but it does not mean it is legal for the customer or correct. And they are putting your mutual client at risk of being cited and fined and possibly having the vehicle impounded if they drive on that temporary registration…this would also generate a Merit Rating Surcharge for the client as well.
The client can transfer their registration as long as the vehicle qualifies for that same plate type…see the 7 day law FAQ. This is a buyer beware situation, because it is an out-of-state dealer I cannot file a dealer complaint…it’s out of MA jurisdiction.
Is there a lien on the vehicle? If yes, who lined that up the dealer or the customer? If the customer secured their own financing or if there is no lien I would have the customer insist on taking the paperwork instead of using that 3rd. party. This way they can have the registration transfer processed when the vehicle arrives, and Yes, they also need to have the vehicle inspected within 7 days.
I would still like Irene to address the in transit coverage.
Irene Morrill: I “assume” you are talking about a BAP:
Regarding newly acquired vehicles …the BAP states:
B. Owned Autos You Acquire After The Policy Begins
1. If Symbols 1, 2, 3, 4, 5, 6 or 19 are entered next to a coverage in Item Two of the Declarations, then you have coverage for "autos" that you acquire of the type described for the remainder of the policy period.
2. But, if Symbol 7 is entered next to a coverage in Item Two of the Declarations, an "auto" you acquire will be a covered "auto" for that coverage only if:
a. We already cover all "autos" that you own for that coverage or it replaces an "auto" you previously owned that had that coverage; and
b. You tell us within 30 days after you acquire it that you want us to cover it for that coverage.
Generally carriers use symbol 7 to activate coverages on the dec page.
So … an additional auto gets the coverages that currently apply to ALL owned autos. If all owned autos have BI/PD/Coll/Comp then the newly acquired vehicle will have that too regardless of “plate” … If all owned vehicles do not have BI/PD/Coll/Comp then an additional vehicle doesn’t get it either
HOWEVER, that PA dealership doesn’t know MA law …and I almost bet they don’t know PA law either. Generally states don’t want dealerships to give temp plates to other than own residents – but …whatever …the Bap can provide coverage
I prefer the …correct way …
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