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Do you have to have insurance on a repossessed vehicle?

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2007-11-26 17:37:25
2007-11-26 17:37:25

No. It's insured by the repossesor. Matter of fact if he wrecks it he has to pay.

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Only if you intend to get it back.


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.


If it's no longer your vehicle, you don't need to insure it.


Not only does Honda have insurance on the vehicle, so does the repossession company, the storage company, the transport company, and the aution agency.


When a car has been repossessed the person paying the insurance should cancel it.


A disabled person's vehicle can be repossessed just as any other person's vehicle can be repossessed. You must make all payments on your vehicle if you want to keep it.


If the car is repossessed then that means the bank owns it. So if they own it and they have it, then no you do not need to pay for insurance on it unless you plan on getting it back.


To get your repossessed car back you may need proof of residency, insurance, and, other personal information to retrieve your repossessed vehicle back to you.


Same as any other repossession, CALL the LENDER. Work something out.


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.


Not Unless you can prove that you already had the required insurance.AnswerNo. as soon as you have no insurance on a leased vehicle, the lein holder has the legal right to repo it.


I 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.


It depends on you locatily, but in general, yes, if you are behind on your payment, your vehicle can be repossessed.


They might be able to garnish your payments for the money that you owe them , but nothing more since vehicle has been repossessed.



If the terms of the lease include the requirement that you must provide insurance on the vehicle, and I've never seen a lease agreement that doesn't, yes, they can hold you in violation of the lease and repossess the vehicle.


When your vehicle is in the process of being repossessed, the bank is starting the process of taking back ownership. If you have not maintained continuous insurance coverage on your vehicle, chances are the bank will force place insurance which will add to your loan balance. If you are anticipating repossession, keep insurance on the vehicle until the vehicle is claimed. If you intend to discuss payment arrangements to get your vehicle back, you must keep insurance prove you are financially responsible. If you do not intend to get the vehicle back you can cancel your auto insurance after the vehicle is no longer yours. When the bank takes possession, you no longer have a financial interest in the car. Notify the DMV before cancelling the insurance that you are no longer the registered owner of the car to prevent fines for no insurance with the state.


it doesn't matter if the pope takes over your vehicle payments. if he stops making them, your credit is damaged and the vehicle is repossessed.


Actually, if you move quickly, you can still secure insurance on the vehicle. Here's what you do:You will need the vehicle registration, so if you are like the 99% of us out here who leave it in the glove box, go claim your property and get the registration.With the registration, get your insurance.renew your tagsClear it with the court.If after a couple days you do not intend to redeem the vehicle, cancel the insurance.


Yes, if the contract requires that the borrower carry insurance coverage. If the borrower fails to adhere to any of the requirements stated in the written agreement the contract is in default and the lender has the legal right to recover the vehicle.


Once a car has been repossessed, you as the owner of the vehicle have the obligation to repay any amount still owed on the loan. Once a car is repossessed, it is often sold in a repossessed cars auction by the finance company. The amount which the car was sold for will be deducted from the total loan amount and then the difference will be owed by yourself. So yes you would have to pay the whole vehicle off if it was repossessed.



The Community answer is not entirely wrong. However, what is more likely to happen is that the finance company obtains "forced-placed" coverage on the car. This is physical damage coverage only and is designed to protect the lender's interest in the vehicle (because it is collateral for the loan). The premium for that insurance will be added to the loan balance. The premium for this kind of insurance is typically substantially higher than that for the collision coverage that you should have maintained.


The tow company is responsible for damage they did to the vehicle, if they claim they didn't do it you have to prove it and make a claim/sue them, otherwise you need to claim it on your insurance.


You can collect it if you want, because the lienholder is going to charge you for not having insurance for as many months as they can, and the amount of what it will cost to get the vehicle repaired. I say give them the check, you will owe less.



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