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Do you need car insurance on a car that's not being driven but has a loan?
Wiki User
∙ 13y ago
Ordinarily, the lender will require, as part of the terms of the loan, that the vehicle be kept insured for physical damage, so as to protect the value of the collateral. Damage can be done even if the car is not driven, such as by fire, storm damage, or similar occurrences which could be covered by comprehensive coverage.
The loan documents will generally provide that in the event insurance is not maintained, the lender can secure physical damage coverage on the vehicle to protect its own interest. The cost of that "single interest" coverage is usually disproportionately high and will be added to the loan balance.
Wiki User
∙ 13y ago
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If you have a car but you dont drive it whether you need to have insurance even at that point?
Insurance is required by loan companies and many states if you have the vehicle registered. If you don't have a loan and you don't drive the car you should be able to drop the coverage. You may be able to get a waiver from the state if they want proof of insurance on a vehicle that isn't being driven but has valid plates.
Do you need to buy auto insurance in NJ if the car is not being driven and is just sitting in a garage?
If the car is registered, meaning that it has license plates, it must have liability insurance. If you hace a loan, the bank probably requires insurance. If it is just sitting on private property without tags, no insurance needed.
Does a car that's not registered have to have insurance in Virginia?
No. It cannot be driven on a public road. However, IF there is a loan on the car, the LENDER can require that it be insured until the loan is paid off.
If you are making loan payments on a car but never drive it do you still need insurance?
If your lender requires you to have insurance during the loan period, then yes. Also. If you are driving , then yes. If the vehicle is not on the road being driven, then no. But, know that if you just drive the vehicle to your next door neighbor's house and you have an accident (collision), then you better have insurance or you could wind up having to pay a huge fine and/or have your lincese suspended and/or have your prospects for a future car insurance company require you to pay alot more for car insurance.
Learners permit insurance loan?
Do not know what you mean by 'insurance loan'?
What are the rights if a car loan is rejected four weeks after the car is sold and being driven?
I would contact a lawyer and ask them...
What happens if your car is stolen and you still owe on the loan?
If the vehicle is/was encumbered by the original loan then it should be insured. If there is no insurance or the insurance does not cover theft the purchaser is still responsible for the full amount of the loan. The issue of the vehicle being stolen does not affect the legal responsibility of the buyer to honor the loan contract.
How would one get a loan for insurance?
One can get a loan for life insurance from a few locations. There are a few banks that will allow you to take out a loan using your life insurance payout as collateral.
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.
Whats loans insurance and how will it benefit your life?
Loan insurance protects you in event of something happening. If you die, your relatives are not responsible for making loan payment. I highly suggest loan insurance to everyone who wishes to take out a loan.
Do you have to pay for loan if parent died with no insurance on loan?
The estate must resolve the loan.
Can the lien holder repo my truck when payments and insurance are current?
They will not repossess a vehicle unless you have defaulted on the loan. Defaulting on the loan is being late with the payments. Call the lender and talk to them.
