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Consignment insurance

obgraham
Explorer
Explorer
Anyone have experience selling an RV through one of the major consignment outfits? If so, how did you insure your vehicle while on consignment? Sounds like many of the companies exclude coverage for that.
14 REPLIES 14

Lwiddis
Explorer II
Explorer II
Sorry your insurance agent will not give you a written guarantee of coverage. AND that you want my opinion...never having spent even one day in the insurance biz. I vote...ah...no go!
Winnebago 2101DS TT & 2022 Chevy Silverado 1500 LTZ Z71, WindyNation 300 watt solar-Lossigy 200 AH Lithium battery. Prefer boondocking, USFS, COE, BLM, NPS, TVA, state camps. Bicyclist. 14 yr. Army -11B40 then 11A - (MOS 1542 & 1560) IOBC & IOAC grad

westernrvparkow
Explorer
Explorer
Forget about foreclosures and the like, even a consignment rider isn't going to cover such an event should it occur. What can occur, and needs to be covered is things like theft, fire and collision damages. PPL (where I admittedly had a poor experience) is in a commercial and industrial area, under a major interstate exchange making it a good location for nefarious actors. Also, the rigs are packed tightly together, with many rigs nearly inaccessible unless it or a neighboring rig is moved. This would mean that a fire would spread rapidly to multiple rigs. It also means the odds of lot damage are great. When the rigs are 6 inches apart and 40 feet long, the margin of error for someone driving a rig they are unfamiliar with is tiny.
The rigs are left unlocked and available for every shopper and lookie loo to walk thru. Shoppers are not escorted by salespeople (you know, no pressure is a big thing). But no pressure also means no security We had most all the knobs and several of the light bulbs in our consigned rig (45 foot pusher) taken as souvenirs. It is easy to imagine that had there been an expensive item easily removed, it would have been gone as well. It is these type of incidents you are insuring against, not the dealer going bankrupt and your rig being sold to pay off creditors.

DownTheAvenue
Explorer
Explorer
I have read with amusing interest the posts where people claim vehicles were seized because a consignment operation closed, or a bill wasn't paid at a repair facility. Laws differ by state, but as an attorney, I can tell you that no where in the United States can a motor vehicle or any other property for that matter be seized and then sold without court condemnation proceedings. As previously posted, I think the posters here are confusing a lien with a seizure. Now, I can easily see where a consignment business is abruptly closed, especially for tax issues or money laundering accusations, and a vehicle is held until rightful ownership can be established.

Mile_High
Explorer
Explorer
A shop can "file" for a mechanics lien for unpaid repair bills through the courts, but he is not automatically entitled to ownership just because it is on his property or because he did work to it.
2013 Winnebago Itasca Meridian 42E
2013 Jeep Wrangler Unlimited Sahara Towed

valhalla360
Nomad III
Nomad III
Campfire Time wrote:


I think this varies by state, but I know for fact in WI (because I live here) that anytime you put your vehicle on a privately owned lot for sale or repair it technically (and temporally) is the property of the proprietor. For example if you leave your vehicle at a shop for repair and decide that you aren't happy with them you cannot remove the vehicle unless they release it to you even if they did no work and you owe them nothing. If you attempt to remove it from their property you can actually be cited for it. Granted this doesn't happen a lot, most cops will stand there while the two parties work it out. When all is said and done any litigation is just a waste of everyone's time and money.

I am aware of at least two situations where the shops went out of business while customers cars were locked inside. Those customers had to file claims to get their vehicles back.

It sucks but that's just the way it is here.


You are confusing putting a lien on a vehicle with owning the vehicle.

A lien means you don't get it back until you pay your bill. The repair shop does not own it and it can't be sold off due to bankruptcy.

Now if the shop goes into bankruptcy, the court may hold the car until they determine if the bill is paid off as once the bankruptcy is done, there is no one to go after the unpaid bills.
Tammy & Mike
Ford F250 V10
2021 Gray Wolf
Gemini Catamaran 34'
Full Time spliting time between boat and RV

Mr_Mark1
Explorer
Explorer
Obgraham, when we consigned our '08 Dynasty at MOT (Motorhomes of Texas) in Nacogdoches, TX, we had to purchase a rider.

If I recall correctly (consignment was summer of 2014) it cost $1,200 for a six months policy but was prorated when we sold after 3 months.

MM.
Mr.Mark
2021.5 Pleasure Way Plateau FL Class-B on the Sprinter Chassis
2018 Mini Cooper Hardtop Coupe, 2 dr., 6-speed manual
(SOLD) 2015 Prevost Liberty Coach, 45 ft, 500 hp Volvo
(SOLD) 2008 Monaco Dynasty, 42 ft, 425 hp Cummins

obgraham
Explorer
Explorer
OP here. Still a problem. My insurer (initials SF!) does not cover consignment and does not issue a rider for such. Consigning dealer (PPL) hasn't been able to find a company which will issue a policy and rider for my vehicle, which is registered in Washington.

Anyone succeeding in finding such?

Could cause me to scotch the consignment thing.

Dale_Traveling
Explorer II
Explorer II
T18skyguy wrote:
,,, all the vehicles on consignment instantly became the property of all the lien holders on the business. It didn't matter that the owner had the title, because in the agreement,,,


They can have my vehicle title when they pry it from my cold dead fingers.

Seriously for the OP, contact your insurance provider. Potentially a change in coverage might be needed just as 2gypsies discovered. Don't fully trust the dealer's coverage to make you whole if something happens.
2006 Hurricane 31D built on a 2006 Ford F53

Campfire_Time
Explorer
Explorer
valhalla360 wrote:


Obviously read the contract but this sounds like an old wive's tale used to scare people away from consignment places.



I think this varies by state, but I know for fact in WI (because I live here) that anytime you put your vehicle on a privately owned lot for sale or repair it technically (and temporally) is the property of the proprietor. For example if you leave your vehicle at a shop for repair and decide that you aren't happy with them you cannot remove the vehicle unless they release it to you even if they did no work and you owe them nothing. If you attempt to remove it from their property you can actually be cited for it. Granted this doesn't happen a lot, most cops will stand there while the two parties work it out. When all is said and done any litigation is just a waste of everyone's time and money.

I am aware of at least two situations where the shops went out of business while customers cars were locked inside. Those customers had to file claims to get their vehicles back.

It sucks but that's just the way it is here.
Chuck D.
“Adventure is just bad planning.” - Roald Amundsen
2013 Jayco X20E Hybrid
2016 Chevy Silverado Crew Cab Z71 LTZ2
2008 GMC Sierra SLE1 Crew Cab Z71 (traded)

valhalla360
Nomad III
Nomad III
T18skyguy wrote:
At one time I lived in Madison, Wisconsin. I witnessed a consignment business declare bankruptcy, lock the gates, and all the vehicles on consignment instantly became the property of all the lien holders on the business. It didn't matter that the owner had the title, because in the agreement, you actually sign the rights to the vehicle over to them. It wasn't an RV business, and I'm sure there are many fine company's that do it, but be careful. I recall there we're over 30 Corvettes and an equal number of other vehicles lost. It really made an impression on me.


Obviously read the contract but this sounds like an old wive's tale used to scare people away from consignment places.

To the OP: Check the contract and check with your insurance company about coverage. If in doubt, keep your insurance up to date.
Tammy & Mike
Ford F250 V10
2021 Gray Wolf
Gemini Catamaran 34'
Full Time spliting time between boat and RV

2gypsies1
Explorer
Explorer
We payed around $15 for a rider on our insurance. We sold in one month through PPL Houston.
Full-Timed for 16 Years
.... Back in S&B Again
Traveled 8 yr in a 40' 2004 Newmar Dutch Star Motorhome
& 8 yr in a 33' Travel Supreme 5th Wheel

T18skyguy
Explorer
Explorer
At one time I lived in Madison, Wisconsin. I witnessed a consignment business declare bankruptcy, lock the gates, and all the vehicles on consignment instantly became the property of all the lien holders on the business. It didn't matter that the owner had the title, because in the agreement, you actually sign the rights to the vehicle over to them. It wasn't an RV business, and I'm sure there are many fine company's that do it, but be careful. I recall there we're over 30 Corvettes and an equal number of other vehicles lost. It really made an impression on me.
Retired Anesthetist. LTP. Pilot with mechanic/inspection ratings. Between rigs right now.. Wife and daughter. Four cats which we must obey.

George_H
Explorer
Explorer
Check with your agent, my policy remained in effect.
George, Juanita and Mandie (boss Shar-Pei)
01 F350, PSD, DRW
05 Carri-Lite 32RS3

Lwiddis
Explorer II
Explorer II
Ah.....I could give you my opinion....OR you could ask your insurance agent for an email regarding coverage...yes or no. Your choice. Let me know.
Winnebago 2101DS TT & 2022 Chevy Silverado 1500 LTZ Z71, WindyNation 300 watt solar-Lossigy 200 AH Lithium battery. Prefer boondocking, USFS, COE, BLM, NPS, TVA, state camps. Bicyclist. 14 yr. Army -11B40 then 11A - (MOS 1542 & 1560) IOBC & IOAC grad