My Mom can't afford car insurance. She is in a nursing home in NJ under Meidcaid, and they won't allow for her funds to cover car insurance while we sell it, but it is taking longer than we expected to get it sold. We can't afford to pay for it ourselves. If it lapses, and we let someone test drive it and they get in an accident, will it be a problem for her either fianncially of legally?
Also, will we have a problem with the DMV when we sell it if she does not have car insurance?
I would figure a way to pay the insurance if possible. In many states, you have to turn in the plates BEFORE the insurance expires. They normally don't allow you to keep the plates if you don't have liability insurance.
How much is the car worth? Do you have the authority to sell her car? If she is on MEDICAID, I would be very careful. She is entitled to have one car to her name, but if the car is sold those proceeds become money and that could affect her eligilbility for Medicaid. I would get reassurance that the sale won't mess up her qualification. You can read around this site or check with a Medicaid attorney.
This sounds like a really tough situation.
I'm wondering if you could talk to the former insurer and ask for insurance on a monthly basis. I've never done it, but it's worth a try.
If you're having trouble selling the car, I'm wondering if you would be able to work around it by selling it to a dealership. You might or might not get as much, but the issue of insurance and liability would be off the table.
I plan to do that with my parents car when the time comes, just too many things wrong with it over the years, plus now it sits and is barely used [I hate driving it].