Auto Insurance

I had to raise premium for my leased vehicle insurance says this will raise it for both this and my finance car in New Jersey Is this true or should i be able to increase just leased car?


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2008-05-14 18:08:01
2008-05-14 18:08:01

they raise there young

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It can affect: 1. Your insurance premium (for your own vehicle, or your parents vehicle if you are on their policy. 2. Your employers insurance premium (if you drive for work) It will NOT affect: 1. Your friend's premium, unless you are scheduled as a driver on the policy

The answer for whatever exam you are taking is "premium".

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.

No, you are misstating what GAP coverage is. GAP insurance is a separate type of insurance that you can purchase as part of your finance agreement or on your personal auto insurance. What GAP does is pay the difference in what your insurance company pays and what is actually owed on the finance account for the vehicle. This is especially important when a vehicle is newer. An auto insurance policy pays either the cost of repair, replacement of the vehicle, or actual cash value of the vehicle at the insurance companies option. If the vehicle is totaled they pay ACV which on a fairly new vehicle is less than the purchase price. Purchasing GAP insurance is usually far less expensive when purchased from your insurance company than the finance company.

Yes, If your Insurance company paid the claim then they are allowed to increase your premium appropriately to cover your risk factors. If you let others drive your vehicle then that is demonstrative of how you handle your vehicle. Loaning out of your vehicle to others increases the risk that you will have a claim.

No. Auto Insurance provides coverage for accidental losses wheel operating your vehicle. To cover the finance note of a vehicle you would have to have purchased credit or finance note insurance offered to you by the dealership at the time of purchase.

I assume you mean a repossession of a vehicle if you let your insurance cancel. When you purchase a vehicle and finance the cost of the vehicle you sign a legally binding contract. One of the terms in the contract is always that you must carry physical damage auto insurance payable to the finance company if the vehicle is a total loss or damaged. If you fail to keep this insurance you have broken the contract and the vehicle is subject to repossession and you may be sued for additional damages if the value of the vehicle is less than the amount owed to the finance company.

Yes, Almost every Auto finance contract requires the buyer to carry Full coverage auto insurance for the term of the finance note. Failure to company with the terms of the finance contract you signed is a default on the part of the buyer and subjects the vehicle to repossession and other remedies at the disposal of the finance company.

Of course. If you don't meet the obligations of your finance contract they have the right to reposess the vehicle. Your main obligations are to pay the payments as agreed and keep insurance on the vehicle as agreed. Read your finance agreement. I have seen many occasions when companies have to repo a vehicle because the customer won't keep the insurance on it.

Your car finance company will add their own insurance that covers their vehicle, but not your liability. ANd it will significantly increase your payments. It would be so much cheaper and better protection for you to find your own insurance. Park it until you get insurance.

If you change vehicles on your policy it will create a difference in insurance premium. You will receive a bill or a refund for the difference in the premium. There is no policy fee just the premium change.

Assuming he is rated on one vehicle in your household, that policy will likely increase due to this loss, or any vehicle he is rated on.

GAP Insurance is usually purchased at point of sale through Auto Dealerships and Automotive Finance Companies. You should look at the paperwork you received from your vehicle purchase. GAP Insurance is NOT Auto Insurance. It is Finance Company insurance.

No, if the insurance company has to pay out anything then they will raise the premium in order to make there money back....

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.

Absolutely! The dealer is not supposed to let the vehicle out of the lot unless proof of insurance is shown.

Car insurance premiums vary based on the vehicle type and how prone your area of town you live in is for theft and accidents.

This will depend on the location you live in but generally the answer is yes. Most place legally require liability insurance in order to register a vehicle of drive on public roads. Secondly, if you finance a vehicle the contract will require that you obtain and keep physical damage insurance to protect the interest of the bank or finance company even if you don't care about your own loss if the vehicle is damaged.

Absolutely. When you purchase and finance a vehicle you sign a legally binding contract. Perhaps you should read what you sign. The contract states that you agree to carry insurance that includes comprehensive and collision with a maximum deductible of usually $500. If you let your insurance cancel then you have broken the contract and therefore the finance company can reposses the vehicle.

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.

Yes they can repo if they catch the insurance lapse. Most financed vehicles have a Full Coverage clause that you signed and agreed to when you contracted to finance the vehicle.

You still have rights to recover the vehicle. The finance company may help you look for it if they're desperate enough to get it back. Even if your car was insured, you would legally have to payback the finance company for the car since you broke a binding finance contract.

Yes, That's how it works. The insurance company sells you coverage in the form of an insurance policy and you pay a premium in exchange for that coverage. If you don't pay for the coverage then your not covered.

An insurance premium derives from a "rate". In turn, the rate derives from a number of factors allowed by state insurance regulators. The premium is the rate multiplied by the number of dollars worth of insurance involved (usually expressed in hundreds) Some of the factors involved in determining the rate, and hence, the premium, include the driver(s) age(s), the make and model of the vehicle, the location where the vehicle is principally garaged (sometimes, drilled down to specific zip code areas). the average number of miles driven, whether the vehicle is used primarily for personal or commercial purposes, and driving history of the driver(s). There may or may not be others depending upon the law of the state in which the policy is issued.

There is no time of the year that is better than another when it comes to purchasing car insurance. No matter what time of year you purchased the car insurance will have to pay the same yearly, or semi-yearly premium. However if you are about to purchase a vehicle, or if you have just received a vehicle as a gift it would be better for you to purchase car insurance before you start to drive your vehicle. Driving your vehicle without car insurance is irresponsible.

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