0
In terms of the lender, probably not.
If the car is financed, the buyer/owner has the contract with the creditor. The creditor requires collision and comprehensive coverage for THEIR vehicle which they finance. They do NOT have any relationship with any other person but the person named on the vehicle loan.
An insurance policy is only issued when the 'policyholder' has a financial interest in the item for which they are requesting insurance. If you apply for an auto policy to cover the newly purchased vehicle, the insurance carrier will likely deny coverage.
If you do not own the car, chances are you do not garage the car at your address of record. This is sometimes acceptable, such as when a child goes off to college, with an insured auto. However, if you simply lend your vehicle to 'John Smith' with no specified ending time/date, this is more than occasional use and the carrier would likely deny any claim arising out of an accident John Smith may have.
Additionally, the terms of an insurance policy are accepted by the buyer of the insurance, by signing and dating the policy application and likely another document upon issuance of a policy. If you have no financial interest in the insured item (a car in this case) you have no insurable interest.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Is it illegal to sell a car on finance to pay off finance?
I believe in certain states yes due to the fact that you don't own the car, the bank or lean holder does.
What is forced mortgage insurance?
Force Placed Insurance is coverage obtained by the lien holder to cover their interest in the financed property when the buyer fails to meet the required coverage conditions of the finance note. No coverage is provided to the buyer at all, only the lien holder. Basically if the finance company has obtained force placed insurance coverage then the buyer is already in default on the terms of the finance contract. The cost of the coverage is added to your bill or finance note without benefit of coverage to the buyer.
Do Tesco Personal Finance offer car insurance?
Yes, Tesco Personal Finance does offer car insurance. Other available insurance products include home insurance, pet insurance, life insurance, travel insurance, and medical/dental insurance. They also offer loan products, savings products, and credit cards.
What happens if your car gets stolen and you have no insurance and the car is on finance?
The finance company will want to be paid in full if they find out it's stolen. The responsibility to satisfy the loan falls on you seeing that you failed to maintain insurance.
What services does blackhorse finance offer?
Blackhorse finance offers, all different kinds of insurance like, car insurance, home insurance, and travel insurance. They also have more less purchased insurances. Blackhorse finance provide money for loan, insurance and property.
When you finance a car do they give you insurance right there?
You get the insurance beforehand.
If a car on finance is stolen and insurance pays out but then the car is recoverd what happens to the car?
It belongs to the insurance company
Can a lien holder charge interest on forced placed insurance?
Yes they can. If the lien holder had to advance the premium to pay for the insurance, the amount is added to your finance note with the interest. Force Placed Insurance is coverage obtained by the lien holder to cover their interest in the financed property when the buyer fails to meet the required coverage conditions of the finance note. No coverage is provided to the buyer at all, only the lien holder. Basically if the finance company has obtained force placed insurance coverage then the buyer is already in default on the terms of the finance contract. The cost of the coverage is added to your bill or finance note without benefit of coverage to the buyer.
When your car gets towed and you have it finance but have no insurance or DL. can the finance company pick up the car for you?
ABSOLUTELY.
Can i be a named driver on my sisters car insurance if i am a the policy holder on my own car?
no
Can car registration be put in different name than finance company?
Yes. The finance company is the lien holder, therefor they are the tilte holder. General you can put whoever you want on the registration.
Is it illegal to sell a car on finance to pay off finance?
I believe in certain states yes due to the fact that you don't own the car, the bank or lean holder does.
If you are the lien holder on a car can you reposs a car if there is no insurance on it?
Whether or not a lien holder can repossess a car if there is no insurance depends on the contract, local law, or both. In this state, a verbal contract is valid. You will need to check local law.
Who get the money if the car is totaled and the car is on chapter13?
The insurance company will pay the finance company not you.
Can your car be repo if you have no insurance?
The repo man will not care if your car has insurance or not. If you haven't been paying for your car, the finance company or bank will take their car back.
Your car was totaled no other car involved you had full coverage insurance and GAP insurance will you be reimbursed for your loss or will it all go to the finance company?
the first priority of the insurance company is to pay of the loan holder (so the value of your car is determined and out of that) whatever is left over will be sent to you. If the value of the car is less than what you owe you are stuck with the balance as far as gap coverage goes you will have to check with your insurance company they're all different
What is forced mortgage insurance?
Force Placed Insurance is coverage obtained by the lien holder to cover their interest in the financed property when the buyer fails to meet the required coverage conditions of the finance note. No coverage is provided to the buyer at all, only the lien holder. Basically if the finance company has obtained force placed insurance coverage then the buyer is already in default on the terms of the finance contract. The cost of the coverage is added to your bill or finance note without benefit of coverage to the buyer.
