Does buying a repossessed vehicle raise your car insurance?
In this state buying a repossessed vehicle is no different from buying any other vehicle as far as insurance is concerned. The insurance agent checks over the car, takes pictures, checks the odometer, and quotes the rate just like any other used car. Of course if you have one car and you purchase a second car, your insurance goes up.
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When your car is about to get repossessed do you still need to have car insurance on it or can you just take the vehicle off of your insurance policy?
%REPLIES%. Answer . Daleann, take the car to the lender, get a reciept for the car, then drop the ins. IF it got stolen while in your possession(before repo) your LOSS wou…ld be much greater without ins.. Answer . aS LONG AS THE CAR IS STILL IN YOUR POSSESSION, KEEP THE INSURANCE. ONCE THE CAR IS GONE, DROP THE INSURANCE. iT WILL BE DONE AS SOON AS YOU HANG UP WITH YOUR INSURANCE CARRIER..
IF you mean a car that is being searched for by the lender, YES. You sure can RISK spending the money one day for ins. and watching it be towed away the next. Its your gamble.…. If you just want insurance to drive any car, I once read that you can get insurance without a car. Ask an insurance agent.
I take it you mean, if your car IS repossessed. In that case, IF you dont plan to redeem it, NO. NO car, NO insurance. Once the lender repos the car, they are responsible for …the insurance coverage.
Answer . \nI would not think so, but, your lender does require that you carry collision insurance on the car, which is the lender's collateral. It depends on what the note …you signed says about this. Read it.
Answer . The government does not make auto loans, and therefore does not repossess vehicles. The IRS may seize vehicles for tax delinquencies and the police at all levels …will confiscate cars used in the commission of a crime. These are often sold at auction, sometimes by sealed bid, and sometimes through a local dealer's lot. You might be able to find out when the next local auction is by contacting the city police (please don't use 911 to call them) or watch the local papers for an announcement. Or, turn off your spam filter and you'll get offers to sell you a list of upcoming government auctions.
Insurance is there to protect you while you drive. Your loanfrom the bank lets you keep the car. Although, most banks requireyou to have insurance before lending you money in …the firstplace. . If you wanted to know whether your car can be taken away just fornot having insurance, then no it can't. Just pay the bills and itis yours. You just can't drive without insurance. Answer . Yes. Part of the security agreement you signed when the bankgave you a loan says that you will keep liability, collision, andcomprehensive insurance on the collateral. This is to protect theBANK's interest as well as your own financial protection. If youare in an accident, they want the collateral to be repaired or paidfor and do not want to be sued for the other driver's injuries. Ifyour insurance is terminated, the insurance company will notify thelienholder and they will repossess the car. Repossessed. Yes. If the loan requires that the car be insured(almost always to protect the banks investment) it can berepossessed for no coverage. Repossession does not take yourresponsibility away from the loan on the vehicle. You are chargedfor fees such as towing, the auction sale loss (what you owe on thecar after it is auctioned) They are never sent back to the dealerand resold. They are used cars and must be auctioned. The average"left over" on a repossessed vehicle (1-3 years old) is about $6000that you are still responsible to pay. ++++++++++++++++++++++++++++++++++++++++++++++++++ Although they CAN repossess your automobile, usually they don't -they don't want the hassle of repoing the car, selling it, andpaying all the service fees, then having to try to collect theirmoney from you. What I have noticed repeatedly is that if you don't have insuranceon the automobile, the bank/credit union/finance company will takeout insurance for you. If you read the fine print on the loanagreement, there usually is a clause in there that allows them todo this. When they do, the insurance is usually the state minimum requiredliability and UIM insurance, and maximum comp/collision - they wantto protect their investment. The premiums for the insurance coverage are tacked onto the loan -either the payments increase, or the term of the loan is extendedto cover the insurance payments. Considering that there are so many cut-rate insurance companies outthere, you don't want the loan holder to obtain insurance for you,unless you have NO other options.
An automotive loan usually contains a clause that says the loan recipient must maintain insurance on the car for the life of the loan. Usually, this includes not only the lega…l minimal liability insurance, but also theft, collision and fire insurance. If you are in breach of the loan agreement, your car may be subject to repossession, depending upon the terms of your loan agreement.
Does a car company have the right to repossess a leased vehicle if it is fully insured and all payments are on time and are you obligated to take it back if it is unlawfully repossessed?
Answer . if a vehicle is unlawfully repossesed, you can get the vehicle back, and claim back all monies you have paid, and keep the vehicle without any further payments be…ing made as long as you have proof you were up to date. Answer . \nYou are never relieved of the responsibility of paying for a vehicle or the lease agreement simply because the vehicle was wrongly repossessed. Leasing companies include many stipulations in contracts, if a payment was even a day late and there was not a grace period included the contract was in default and the vehicle was subject to recovery. The person does not have to accept the vehicle back, but they will in all probability be responsible for the remainder of the lease agreement. Unfortunately many of these type cases that end up in litigation which is expensive, stressful and time consuming for both parties.
You're screwed . This is one of the diciest situations that can happen to somebody purchasing a vehicle. Frequently, the last purchaser of the stolen vehicle is screwed. …Hyper-technically speaking, you received stolen goods, which makes you a fence! But those cases are rarely prosecuted, if the purchase was done in good faith on your part. But what will that get you except being car-less and thousands of dollars poorer? Not much.\n. \nYou're only recourse is through the civil courts. You'll have to sue the party who sold you the vehicle. Hard if it's a dealer; very hard if not impossible if it's a private individual. The insurance company is not required to pay you anything, because the car was not stolen from you and you were not the rightful owner to begin with.
Answer . \nNo.\nMost (99.9%) of the lenders require you to maintain Comp.& collision Ins. on the vehicle the money was loaned for and secured by.\nIf you fail to do this t…he lender can, and in most cases, will put this Ins. on the vehicle and you will be charged. The charge for Ins. placed on the vehicle by the lender will be quite high, and it is then added to your payment. If you get your own Ins., the lender will cancel the ins. they placed on the vehicle.
Answer . If the car is leased or has a lien on it (meaning you have a loan out on it) it CAN be repossessed for letting the insurance lapse on it. Cars that have liens on …them are required to carry full coverage insurance on them by the bank. This is because until you pay off the loan the bank technically owns your car, and they want to protect their investment. If you are unsure if you have a lien on the car, take a look at the title. If there is a lien, it will show on there.. If you are thinking, "How will they know?" here is the answer to that. When your insurance coverage lapses (runs out/expires) and is not renewed, the ins. company notifies the DMV of your state. Under most state laws, you are the given an average of 14 days to resume insurance coverage or are required to surrender you license plate(s). If the 14 day average passes and you have not done either, the bank that has the lien on your car is notified (because the sate DMV has those records). The bak will then attempt to call you and rectify the situation. If they are unsuccessful, they have the car repossessed.
The party that purchases the vehicle from the lender. You are done with this vehicle once it is repossessed. Here is some information you may find helpful.. When you finance …or lease a vehicle, your creditor holds important rights on the vehicle until you've made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car.. Talking with Your Creditor It is easier to try to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you'll be late with a payment. Many creditors will work with you if they believe you'll be able to pay soon, even if slightly late.. Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the car. By voluntarily agreeing to a repossession, you may reduce your creditor's expenses, which you would be responsible for paying.. Remember that even if you return the car voluntarily, you're responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report.. Seizing the Car In many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a "default." In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are allowed on your property to seize your car without letting you know in advance.. But creditors aren't usually allowed to "breach the peace" in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace.. Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property.. A creditor usually can't keep or sell any personal property found inside. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can't account for articles left in your car, talk to an attorney about whether your state offers a right to compensation.. Selling the Car Once your creditor has repossessed your car, they may decide to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold.. In either of these circumstances, you may be entitled to buy back the vehicle by paying the full amount you owe, plus any expenses connected with its repossession (such as storage and preparation for sale).. In some states, the law allows you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession.. The creditor must sell a repossessed car in a "commercially reasonable manner" - according to standard custom in a particular business or an established market. The sale price might not be the highest possible price - or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable.. Paying the Deficiency A deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $2,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing.. In most states, a creditor who has followed the proper procedures for repossession and sale is allowed to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract.. Depending on your state's law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only opportunity to present any legal defense.. If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.
Answer . No. It's insured by the repossesor. Matter of fact if he wrecks it he has to pay.
The gap insurance is part of your auto loan so I am not sure what your question is. Gap insurance covers your car if you total it and the fair market value for your car is bel…ow what you owe. If your car gets reposessed, you still owe the lender. Actually, the cost of the gap insurance is rolled into the loan - it's not part of the loan. If you can find your original paperwork from when you bought your car, find the information on the company that issued the gap insurance policy, and then call them and tell them you no longer own the car, and see if you can get a partial refund on the premium! Can't hurt to try, right? I do vehicle refinances, and our auto loan contract includes the gap insurance (although we call it something else) for free, so I have helped several people cancel their gap coverage, although we usually do it pretty early in the loan. Same with credit disability insurance, if you have it.
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It is not outside the realm of possibility; however, it would need to be a provision in the original sales contract. Since all of the US states require insurance of some sort …on all vehicles, it is possible that a lender has written this in to the contract. It would protect their collateral in the event insurance lapsed.
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no you can not sory
Of course not! It wasn't stolen or wrecked, it was takenfrom you for failure to pay on the loan! Be sure to cancel the insurance.