Can a bank add insurance to a loan?

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2005-09-20 11:47:47

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Yes. If you do not have insurance on a car or house that is used as collateral for a loan the lending institution can take out insurance and charge you for it. The insurance THEY use will be far more expensive than what you can purchase privately, and will not protect YOUR interests, only theirs.

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2005-09-20 11:47:47
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Q: Can a bank add insurance to a loan?
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Related questions

Where can one get good personal loan insurance?

Usually you can get a personal loan insurance from the bank you are taking the loan from, or from an insurance company. There are also several website throughout the web, where you can get loan insurance.

Does a bank have to refinance a car to transfer payments to someone else?

Yes. Or the bank can "add" you to the loan and retain the originator too making the loan a "joint" or "co-signed" loan.

I want to get an insurance claim that I got with an auto loan from a bank. How can I go about it?

Approach the bank that you have the agreement with to discuss the issues

What is the word for taking money out of the bank?

withdraw or withdrawal Bank of America was taking $ 304.00 out of my mortgage payment every month for my mortgage insurance. I had no mortgage insurance on my FHA loan. Bank of America could not give the money to HUD because my loan was not insured. So why was Bank of America taking the money without my permission. Bank of America was aware my loan was not insured, but they money was continually being taken out of my loan payment illegally. Robert

What companies offer home loan insurance?

There are many companies which offer home loan insurance. These include the ICICI Bank, HDFC Life and SBI Life. Another company to offer this insurance is HLIC.

What is the cost of a bank loan called?

Under FHA, the cost of a bank loan is called a MIP, or mortgage insurance premium. Some banks also call this the interest on the loan. A person borrows a certain amount from the bank and then pays a percentage on that money borrowed.

Where can you go to obtain a loan threw the FHA?

When you get an FHA loan it is not funded directly through FHA. FHA is essentially an insurer for loan. So the Mortgage Insurance paid on an FHA loan is an insurance policy for the company giving you the actual loan. Most any bank or lender can give you an FHA loan.

When can you remove the mortgage insurance from your loan?

1. when the bank allows or 2. when you pay off the mortgage.

Do you have to pay the bank back for a vehicle if it gets wrecked and the bank pays it off?

Yes, unless the amount of the loan was covered by the insurance.

If your car that you took a bank loan out for was in an accident and written off and your insurance company sends you a check for the car's value do you then have to pay off the bank loan in full?

Yes, you are still responsible for whatever amount remains unpaid on your loan.

What is easier to pay car loan or bank loan?

bank loan

What happens if an insurance makes out a check to myself and a bank?

You have had several things happen:You bought a car and as is the law requires told the insurance company who was financing it, and probably you have total loss or "gap" coverageThen you got into a crash that totaled the carThe insurance company knows you have to clear your car loan, and because of the coverage type, your bank has to get the moneySo you have to take it to your loan officer and get them to use the funds to clear your car loanYou will have to sign the check and the bank will take it and apply to your loan.

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