Tag insurance

Tag insurance, also known as "tag and title" insurance, is a type of insurance policy that covers a vehicle while it is being transported from one location to another. This type of insurance is often required by lenders or leasing companies when a vehicle is being shipped from one state to another.

Here are some key features of tag insurance:

  1. Temporary coverage: Tag insurance provides temporary coverage for a vehicle while it is being transported, usually for a specific period of time (e.g., 30 days).
  2. No physical presence required: Unlike traditional auto insurance, tag insurance does not require the vehicle to be physically present in the state where the insurance is purchased.
  3. Limited coverage: Tag insurance typically provides limited coverage, usually only for liability and collision damage, and may not provide comprehensive coverage.
  4. No driving allowed: The vehicle is not allowed to be driven during the period of coverage, as it is intended to be transported only.
  5. Required by lenders or leasing companies: Tag insurance is often required by lenders or leasing companies when a vehicle is being shipped from one state to another, to ensure that the vehicle is covered in case of an accident or damage during transport.

Tag insurance is usually purchased through a specialized insurance company or a broker, and the cost of the policy varies depending on factors such as the type of vehicle, distance being transported, and duration of coverage.

Some common scenarios where tag insurance may be required include:

  1. Vehicle relocation: When a vehicle is being relocated from one state to another, tag insurance may be required to ensure coverage during transport.
  2. Lienholder requirements: Lenders or leasing companies may require tag insurance as a condition of the loan or lease agreement.
  3. Transportation companies: Companies that specialize in vehicle transportation may require tag insurance to cover their vehicles during transport.

Overall, tag insurance provides temporary coverage for a vehicle during transport, and is often required by lenders or leasing companies to ensure that the vehicle is protected in case of an accident or damage during transport.