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Absolutely! The insurance company should be sending the lien holder a copy of your policy and if you are not providing full coverage they will either repossess the car or purchase Lender's Single Interest Insurance (very expensive policies) and add the premium to your loan.

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โˆ™ 2011-09-12 16:02:37
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Q: Can the bank holding the lien on a car find out if you have only liability and can they repossess if they require full coverage?
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Related questions

Do you have to have full coverage on a sports bike if you get a bank loan or will liability due?

More than likely your lien holder will require you to carry collision and comprehensive coverage in addition to liability coverage, this is to protect them/their investment.

Is car insurance mandatory in Maryland?

Yes, I did some research online and Maryland does require liability insurance. 47 States require minimum liability coverage.

Does the state of Georgia only require liability car insurance?

The state of Georgia only requires liability and property damage coverage. You have the option to purchase additional coverage's. It is a good idea to purchase uninsured motorist coverage.

Do you need liability insurance if you have a party in a school building?

Absolutely. And if the school system has anyone with intelligence they will require you to provide them with proof of such coverage in the same amount equal to their liability coverage amount. If this is a one time thing you can purchase a liability policy called special event coverage.

Which states do not require liability coverage for auto insurance?

All states either require insurance or proof of financial responsiblity.

Do Wisconsin and Tennessee require mandatory auto insurance?

Both Tennessee and Wisconsin require auto liability insurance in order to drive in the states. Wisconsin requires that you have liability and uninsured motorists coverage.

Why is uninsured motorist coverage required in states that require liability coverage?

UM (uninsured motorist) coverage is not required in all states that require liability coverage. However, UM is an important coverage in auto insurance because it steps in and pays for your bodily injury (medical expense, lost wages, and pain & suffering) when you are injured by a hit-and-run, uninsured driver, or irresponsible driver who carries low liability coverage on their auto insurance. In another word, UM is a coverage for you and people in your car guarding against the risk of irresponsiblly insured drivers - and there are a lot of them out there.

Do car insurance Nebraska laws require me to have full coverage insurance?

In Nebraska, you're actually not required to have full coverage. You'll only need to have minimum liability insurance.

Does Michigan require car insurance?

The state of Michigan does require that all drivers have some car insurance. This includes either having liability or full policy coverage.

Does the state of Missouri require rental car to be paid for under full coverage auto insurance?

No. Rental coverage is something you buy extra. "Full coverage" just means you bought liability, comprehensive, and collision insurance.

How much insurance coverage do you need to require from your trailers?

The trailers liability coverage is generally an extension of the vehicle, if you want the trailer to be covered for anything else, a separate policy would be needed.

Do motorcycles licensed for street use still need liability insurance coverage?

Yes. Off road vehicles do not require insurance.

Does the Massachusetts DMV require me to have full MA car insurance coverage?

No, the Massachusetts DMV only requires that a driver have liability insurance.

If I buy a new car with a loan, do I have to have liability auto insurance in New York State?

You are required to have liability insurance on any vehicle. The lender may require you to have full coverage as a loan condition.

Can a staffing agency require you to carry your own liability insurance if they place you in a driving position for a company that already fully cover their vehicles?

Sure they can. If you don't like the requirements of the job then don't take that job. They are probably going to insist that you carry a limit if liability equal to their limit as well as the requirement to carry coverage. If you have an accident you will probably be sued and they will be sued as well. In order to protect their insurance coverage they will require you to have this coverage for an accident that is your fault.

Is Texas car insurance mandatory like it is in some states?

Car insurance is mandatory nation-wide. Most states require a minimum coverage of liability, but some states do require more.

What is the minimum type of coverage for automobile insurance required by law?

This is different based upon the laws of the state where the person lives. Many different states have completely different limits of liability required to register your vehicle. Some also require other coverages besides just liability coverage.

Will having a swing set make my homeowners insurance more expensive?

In most cases, your homeowner's insurance will not become more expensive when you purchase a swing set. However, a small number of agencies will require that you increase your liability coverage. Even if you are not required to increase your liability coverage, you should consider doing so.

Where can you get liability Insurance in Nebraska?

Contact a good agent, if they do not sell the type of coverage or policy you require they will more than likely know an agent that does and will be glad to refer you.

Does liability insurance cover your vehicle if it is stolen and wrecked?

In an at fault loss, liability covers injuries sustained by the claimant (the person for whose injuries you are responsible) example: you rear end the car in front of you.. If that person has PIP coverage, that coverage is primary. Once it has been exhausted, your liability coverage will pay for any amount above the PIP coverage UP TO YOUR POLICY LIMIT once that has been exhausted, you may be sued personally for the excess amount Your car will be covered only if you chose to purchase Collision coverage. If you have a lien on your car, the bank will require this coverage. If not, the coverage can be purchased at your option. This is why it is very important that you review these coverages with your carrier to be sure your coverage is adequate. It is imperative that you understand the definition of "Full Coverage" in your state. It does not mean you have what you need to be adequately protected.

What type of car insurance does the bank require you to have?

If it is a purchase, they will require you to have comprehensive and collision coverage. Usually with no more than $500 or $1000 deductibles depending on the bank. If it is a leased vehcile they may also require you to have 100/300 minimum liability limits.

Can you have only liability insurance on a car in the state of fl without being penilized?

Yes- HOWEVER- if you have a loan that has not been paid off, the LOAN terms will require that you insure the car for full coverage. Once it is paid for, you can carry liability only.

Does California require attorneys to have professional liability insurance?

Yes, California does require the attorneys to have professional liability insurance.

Are there any states that do not require Liability Insurance?

No, all states require liability insurance for drivers. There are some states, however, which only require the bare minimum.

Do you need to show proof of insurance at a car dealership when buying a used car?

Absolutely. Even if you pay cash for the vehicle you will need to prove that you have liability insurance in order to legally drive off the lot. If you are financing the vehicle you will have to show that you have liability and physical damage coverage before driving off the lot. The dealer will contact your insurance agent to verify that the coverage is in force and will add the vehicle to your policy with the coverage that they require and that you want.