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If you look at a certain seguro para pequeñas empresas 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?
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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
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Get Small Business Insurance From The Hartford
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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 hoy mismo.
Última actualización: 22 de julio de 2022