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Lien Holders Insurance Indemnity ClauseYes, Your finance contract (Loan) almost always requires that the borrower provide a Full Coverage Auto Insurance Policy on the vehicle being financed to protect the lien holders interest in the property until the loan has been satisfied. It's a matter of your finance contract. Failure of the borrower to provide the coverage required under the terms of the finance agreement puts the borrower in "Default" on the finance note subjecting the vehicle to repossession and other remedies at the lenders disposal. Include All DriversFor Full Coverage, The Insurance policy should be properly in the name of the vehicle owner with any additional drivers listed as additional insureds on the policy. When the vehicle is still under a finance note. The finance company will generally require that the buyer maintain full coverage auto insurance until the note is paid. As this is part of the finance agreement signed by the buyer, failure to do so can subject the vehicle to repossession by the finance company. Operators LiabilityFor liability only, any driver may obtain a liability policy for operation of the vehicle whether they are the owner or not, Since the Driver as well as the vehicle owner can both be held equally liable for any loss regardless of who is driving, most insurers will require you address the insured status of the owner as well. Owners LiabilityThe owner "Name on Title" is just as liable for an accident in the vehicle as the driver is, even though the owner may not have been driving when the accident occurred. If someone was kind enough to sign for you to buy a car, the least you can do is make sure you don't expose them to a lawsuit over a future accident you may have in the car. This is why many states have begun requiring the owner to have sufficient coverage regardless of whether the owner actially drives the car.
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โˆ™ 2013-11-15 20:16:21
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Q: Does an auto insurance policy have to be in the same name as the car loan?
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Related questions

Can you get insurance on auto that is not in your name?

You can pay for insurance on an auto that is not yours...but the policy must be the titleholder's policy.


Does auto insurance policy have to be in the same name as on the title?

does the name on the insurance policy have to be the same as the title in anderson south carolina


At what age should my teen get his own auto insurance policy in Rhode Island?

A teen in Rhode Island should get their own auto insurance policy when they get a car in their name.


Can a person get auto insurance on a auto if the auto is not in their name?

Answer 1: yes, my sister is borrowing my car and she her own insurance on it.Answer 2: You can always get insurance as an additional driver on another person's car insurance policy. Isn't that how children in the house are added to their parent's car insurance policy?


Can I get insurance on a car that the loan is in his name only?

yes. if you're living together, his policy requires you to be on it.


If your name is on the car loan and your 19-year-old gets her own insurance will you have any legal liability if she is involved in an accident?

The Insurance Company, Then The Name On The Title Of The Auto. If It Got To That. If There Is Insurance On The Auto In Her Name All Should Be OK. Best To You


Can you have a car loan in your name and someone else carry the insurance on the car?

Your name must be on the insurance policy, otherwise you are not a covered driver under that insurance policy. Failure to disclose a known driver can void any coverages afforded by the policy and is a well known form of insurance fraud.


Is my husband covered if auto and auto insurance are in my name?

Your husband must be on your policy to be covered. In some States you have to ad your spouse to the policy regardless if they will drive your vehicle or not.


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Is it possible to have your name on your parents insurance policy if the car loan and the registration are in your name?

This is not a good idea. You need your own insurance policy. There are coverages you do not have by being on your parents policy. You want to be a "named insured". This means that you control the policy and not your parents. If you want to loan your car to anyone you can, if you are on your parents policy you cannot do this. Also if you need to rent a car, you are not covered under your parents policy to do this. You would be under your own policy. Contact your insurance agent for a better explanation.


How do you find out if someone has auto insurance?

get a copy of the police report. it gives you the name of other parties insurance company and policy number.


Does getting a auto insurance policy in your name effect your credit score?

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