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Do you have to have full coverage on a car if you get a loan for it?
Wiki User
∙ 12y ago
Most lenders require that and include that requirement in the loan agreement papers that you signed. Failure to keep the insurance current can result in either lender initiated insurance which will be far more expensive and won't cover liability, or it can result in the loan being "called in" and the car sold at auction. Check your contract to determine which option the bank selected.
The lender is watching out for himself in these situations and, this is not to protect you interests. What should have been added though was that if the vehicle is "called in" and sold at auction, you are responsible for the difference of what was obtained at auction and what you owe on the car.
Let's say at auction they get $700 at the auction for the car, and you owe $4,000 on it, you are responsible for the $3,300.00 and whatever fees are associated with the sale.
You are best off for your interest to carry full coverage.
Wiki User
∙ 12y ago
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What can you do if your car is stolen and you still have a loan on the car but your insurance does not cover theft and they recover your car totaled?
YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also. You should have had full coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn't that expensive and would have covered theft.
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don't have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
What type of insurance is needed when you have a lien or loan on your car?
comprehensive coverage
If the title to a car is in your name but the name for the car loan is in someone elses name who has legal ownership?
If only your name is on the title and the loan is not listed as a lien on that title then you are the legal owner. If someone else obtained a car loan for you then their name should be on the title to the car with yours. The question of ownership should be addressed if someone was kind enough to borrow money for you to have a car. The car should have full insurance coverage in case of an accident.
How do you determine if you need full coverage when your car loan is paid off?
If the loans are paid in full and you have received the title(s) from the lenders, then it is totally your decision of what amount of coverage to have. Remember, it is now your vehicle 100%. If you can afford the higher coverage why not better protect yourself, family and vehicle? Check other agencies for same coverage but lower rates. Cleaning up your credit may even lower your insurance rates.
What coverage should you get for a 2001 car?
If you have a loan on it, you'll need full coverage. If you do not have a loan, I'd suggest liability coverage for price. If you live in a busy city, get full coverage, as accidents do happen. Consult an insurance agent to see what is best for your situation.
Do you have to have full coverage?
On a car? If it is old, then no. If it is new, I suggest you get full coverage because it will cost less to fix it than replace it. If you finance any portion of the loan in which the car is having a lien on it, you will need to protect the collateral and the bank will require a full coverage policy.
After how many years can you remove collision coverage from your car?
You can remove collision and comprehensive coverage whenever you own the car free-and-clear. As long as there is a loan, the lender will insist that you keep full coverage.
If your friend wrecked your car and you have only liability but he has full coverage who will pay for your car?
YOU will. only his liability will follow him. you loan your car, you loan your insurance as well. So looks like your not getting your car paid for.
How many years should you keep full insurance on a car?
If one has a car loan for a new or used car in most states they are required to keep full coverage insurance. After 5 to 6 years coverage can be dropped to liability if needed.
What can you do if your car is stolen and you still have a loan on the car but your insurance does not cover theft and they recover your car totaled?
YOU pay off the loan like you agreed to in the contract. You likely agreed to have ins. that covered theft also. You should have had full coverage on a car with a loan on it. Sorry, you have to pay the loan off and now you own a totaled car! Comprehensive coverage isn't that expensive and would have covered theft.
Private seller has title of used car that is being paid for by buyer does the buyer have to get full coverage insurance to register the car and get a tag for the car?
In my state you only need to have Liability insurance the get a title and register the vehicle. If, however you have a loan on the car the lender will require you to have full coverage.
Can a car be repossessed over having liability coverage insurance instead of full coverage?
If the lender required full coverage (to protect their interests) as a condition of the loan and you drop it and replace it with a liability only policy, then you have breached the terms of the loan. The lender now has the right to declare the loan in default and demand immediate payment in full of principle and interest. Failure to pay as demanded then gives them the right to repossess the car and have it auctioned. If the auction does not get enough money they can sue you for the difference!
Do you have to have collision on car that has car loan?
A bank will want full coverage. It is a state law to carry comprehensive insurance ( collision ) on any vehicle with a lien.
Do you need full coverage insurance if your car is 5 years old?
Full coverage requirements have nothing to do with the age of the car. If you still make payments on the car then you still have to have full coverage. If you own the car outright, then you do not have to have it.
If you cancel full coverage on a financed vehicle and transfer it as a gift will the new owner be required to get full coverage on the car?
You cannot transfer the title while the lender has a lien on it and they will NOT release the lien until the loan is paid off. They will also NOT allow any names on the title that are not on the loan papers.
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don't have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
