If you look at a certain small business insurance
policy, you may be wondering, “What is a lienholder?” A lienholder is a financial institution that holds a loan until it’s paid in full. If you have a car loan for your business’ vehicles, the lienholder is included on your car insurance policy. After the auto loan is paid, the lienholder gets removed from your policy because you or your business owns the car.
Is Lienholder the Same as Owner?
Legally, the lienholder listed on your car title is the owner of the vehicle. A car with a lien means a bank or lender provided the money to purchase it, so they have a legal claim on the property. Once the car loan is paid in full, then you’ll be the owner.
Be aware that even though the lienholder is legally the owner of the property, you or your business are the registered owner. That means you’re responsible for:
- Paying any local taxes on the vehicle
- Registering vehicles with the state
- Maintaining the required amount of insurance coverage
Can You Sell a Car With a Lien?
It is possible to sell a car with a lien, but it can take a few steps. It’s a good idea to contact your lienholder to determine the loan payoff amount. To get the total, you’ll most likely need:
- The vehicle identification number (VIN)
- Vehicle history report
- Maintenance records
Trading in a car with a lien at the dealership can be a simpler process because the dealer will pay off the loan and get a title transfer. But if you’re planning to use private parties to sell the car, you’ll either have to pay off the loan yourself or see if the buyer can pay off the loan in exchange for the title.
Small Business and Lienholders
When it comes to small businesses, lienholders come into the picture when buying a car. When financing your car or business vehicles, the lienholder is the bank, person or entity that provided the money. You’ll likely have to add a lienholder on your el seguro comercial para automóviles
policy. But after you pay off the car loan, you can remove the lienholder from your policy.
Get Small Business Insurance From The Hartford
Somos una compañía de seguro que tiene el respaldo de más de 200 años de experiencia. We understand the risks and challenges small business owners face and offer small business insurance products made specifically to help protect your company. We offer small business insurance tips
y risk avoidance
guides for your business.
Our specialists are here to help you with your coverage needs. Whether you have questions about lienholders, need to get coverage or want help with a claim, we’ve got your back. Get a small business insurance cita
Última actualización: 22 de julio de 2022