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Can you finance a car and still make payments on it even though you don't have insurance on it?
Wiki User
∙ 10y ago
Yes one can, but almost all companies providing financing will require you to obtain and have insurance with specified levels of coverage immediately after purchase (if not before even approving the loan) if you don't already have it to protect their investment. If you do not get the insurance required within their time limit, they have the right to call the loan and demand its full repayment or repossess the car.
For example the CU I financed my first car with wanted proof that I had made at least an initial payment on insurance with $250 collision and $100 comprehensive coverage before even approving the loan.
So while it can be done its rarely practical to do. Its really up to the lender.
Of course, your state will still require either liability insurance or posting a bond for the car to be legally driven! But thats a separate issue from financing when you don't yet have insurance.
Wiki User
∙ 10y ago
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Is it illegal to sell a car when your still making payments on finance?
No its perfectly legal and if you are still making payments on it, that increases values.
Can you cash a check written to you by your insurance company for a car that was totaled but still has remaining payments on it to a finance company?
Sure you can, but you're still responsible for paying off the loan to the finance company. If the check will cover the pay-off, give it to the finance company. If it doesn't, give it to them, anyway. It'll reduce your debt by that much.
When someone assumes your finance payments are you no longer responsible for the vehicle?
IF you transfer the title and loan out of your name you are not responsible. IF NOT, and they don't make the payments, or have insurance on it, YOU are responsible for all aspects of the vehicle as you still OWN it. the name on the title & loan is the responsible party.
If you own your car or house and are no longer making payments should you still have insurance on them?
If you own your car or house and are no longer making payments, should you still have insurance on them? Explain why or why not.
What does the finance company do when a car is totaled and there is no collision insurance?
If the driver was uninsured or only had liability insurance, they would be liable to still pay the finance company back or face a lawsuit.
Does gap insurance still apply if your car is paid off?
It will depend on the type of gap insurance you have. Finance gap insurance would expire as there is no finance to cover but return to invoice and vehicle replacement would still carry on until the end of the policy or a claim is made.
What if you wreck a car without insurance and owe the bank payments?
Then you still owe the bank.
Can you be charged a repo and insurance fee when the original owner never notifid you of the repo and drove the vehicle away herself?
I'm not sure what your question/situation is but... The Finance company can do what's called "forced insurance" meaning if you do not have insurance they will put insurance on the vehicle at a hefty cost to you. They can also repossess the vehicle even if you are up to date in payments but do not pay them their insurance rate.... and that money is still owed after the repo.
How can you be put on someones car title so you can get the insurance in your name because he no longer drives and insurance will be cheaper also he is still making payments on the car?
This is not completely necessary. There are plenty of insurance companies out there that will write this policy in your name if you are the primary operator of the vehicle, regardless of the ownership. Just be sure to list the correct finance company so there are no problems with that.
If the bank repossess your car do you still have to pay your car payments?
NO but why would they repo if you are making payments. You don't still have to continue to make payments, however, if your car is repossessed, normally the finance company will sell the car and you owe any deficiency balance. In other words, let's say you still owe $5000 on your car and the finance company sells the car at auction for $4000. They will eventually contact you and you will owe the $1000 difference.
Can your car get repo for no car insurance?
Yes, Almost every Auto finance note contains language that requires you to maintain "Full Coverage" Auto Insurance for the term of your finance note. It just part of the contract you agree and sign when you financed the car. This is to protect the finance company from a loss of the vehicle. Remember the finance company still owns the vehicle until you pay it off. Failure to comply with the insurance requirements of the finance note you signed constitutes a default on your loan subjecting the borrower and the vehicle to whatever remedies are at the finance companies disposal, including repossession. If you act quickly, Are not behind on your car payments, Get your full coverage insurance in place and pay the towing fees, Call the company and be nice with them and assure them that you understand your obligations with apologies for any oversight, Most finance companies will let you take the vehicle back and continue paying your note.
I am thinking of buying a car from a seller who still has loan payments. How can i be sure i will get the title from him after i pay the finance company?
Go to the bank or finance company and tell them what you are doing. Don't give the seller any money untill you have worked it out with the finance company.
