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Topic: consigning coach problem (Read 659 times) previous topic - next topic

consigning coach problem

Hi all,

My wife and I were getting ready to put our coach up for sale on consignment with a dealer, and we have run into a problem. The dealer asks us to sign a contract which says we will maintain insurance in certain amounts. Problem is, our insurance company does not cover the coach while on consignment.

We have called several insurance companies and the story is the same.

The dealer that we were going to use says they open a Service contract so that our insurance will cover if something happens, we just have to say we had taken it in for service. I am really concerned that if something would happen while on a test drive our insurance company would tell us to pack sand and sell our house.

Some people have suggested just going with the flow and don't worry about it. To my way of thinking they are saying "commit a little insurance fraud, you'll probably get away with it."

My questions are:
1. You you have insurance that will cover you while your coach is on consignment ? If so, who is that?

2. Do you know a dealer who carries insurance that will cover a consignee ?

I appreciate your input

Len
Len and Deb Speiser
1999 U270 36'
2017 Jeep Wrangler Unlimited
You're either on the bus, or you're off the bus!--Ken Kesey
If you're lucky enough to live in a bus, you're lucky enough!

Re: consigning coach problem

Reply #1 –
When I consigned my last coach they supplied the insurance.
Peter and Frieda Morin
1999 36ft. U320 Foretravel
Build # 5436
1998 Suzuki Sidekick Sport

Re: consigning coach problem

Reply #2 –
Put an ad here and Facebook and color your coach gone

Re: consigning coach problem

Reply #3 –
We ran into the same thing 10 years ago when we put our mpg up on consignment. You really need to talk carefully with your agent. As I recall, if someone was taking the coach for a test drive your insurance would cover it. If one of the employees was moving it, and damaged something, their insurance would take care of it. If a tree fell on it while on the consignment lot your checkbook takes care of it.

I'm not an insurance expert, and this is what I think I remember from 10 years ago. Things most likely are quite a bit different now.

Re: consigning coach problem

Reply #4 –
We do not use consignment or let new prospective owners drive the coach. And title must be transferred, even to temp plates before releasing the coach. All to try to eliminate risks.

Re: consigning coach problem

Reply #5 –
Quote from: lenspeiser –
Hi all,

The dealer that we were going to use says they open a Service contract so that our insurance will cover if something happens, we just have to say we had taken it in for service.

Len

This one is a no-brainer.  Turn around on your heel and walk away.  Depending on your level of social obligation, tell your insurance company about this RV company's practices or call your state's insurance commissioner.

"We" don't commit insurance fraud.  Why?  The insurance companies have very long memories and they talk to each other, not to mention that fraud is illegal, it's also the wrong thing to do in a functioning society.
1992 Foretravel Grand Villa
U225 SBID Build No. 4134
1986 Rockwood Driftwood
1968 S.I.A.T.A. Spring
1962 Studebaker Lark
1986 Honda VF700C
1983 Honda VF750C
Charlie, the Dog was broken out of jail 24 Oct 2023
N1RPN
AA1OH (H)e who must be obeyed.

Re: consigning coach problem

Reply #6 –
MOT likely has "excess coverage"  limits that begin coverage at the amount set forth in their consignment agreement (liability $300,000 bodily injury, $500,000 per accident, $100,000 property damage per accident). Their practice is not only legal, but is a good business practice, if they are going to take control of your coach and show/demo/drive it with prospects.

Raising liability limits on a vehicle policy is usually very inexpensive and easily accomplished, I am surprised a carrier is declining to increase the liability coverage
Tim Fiedler    2025 LTV Unity MBL on Order
2000 Chevy Tracker 2 Door Convertible 4WD Now lifted 4.5"
1985 Citroen 2CV6 Charleston
Murphy Rebel on wheels with 175HP Titan
Cessna P337
1980 48' Westport MY (!/4 Share)

Re: consigning coach problem

Reply #7 –
Tim,

Boy if all that was true!

Our insurance company (and every one we contacted) will cover our coach right up to the time it goes on consignment. You may want to check with yours to see if it will should you decide to consign.

MOT admits  that they have run into this before, and people either take the risk, or don't even question.

It is not about raising coverage, we were more than happy to do that. It is just not available in a consignment setting. It is like telling your insurance company you want to take your coach for a few laps at Laguna Seca. They will tell you great, you are covered up to the gate, and once you leave the gate, but nothing while you are doing laps. Then suggest that while you are there some people you don't know may want to do a lap or two.

Take a defibrillator with you when you talk with your agent.

The great business model is to have a potential customer sign a contract that contains a clause that flat cannot be fulfilled.
It takes the liability off the companiy's back and puts it square on the shoulders of the consignor.

If you know of an insurance company that will cover under consignment at under the cost of the coach, please let me know.

I think the world of MOT. They have done a lot of great stuff for us. This is just a case of us not having the pockets deep enough to take the risk.

Thanks, and happy trails,

Len
Len and Deb Speiser
1999 U270 36'
2017 Jeep Wrangler Unlimited
You're either on the bus, or you're off the bus!--Ken Kesey
If you're lucky enough to live in a bus, you're lucky enough!