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If the lender has forced insurance on a loan does it cover you if you get stopped?


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Wiki User
2015-07-15 19:32:42
2015-07-15 19:32:42

NO, NO, and NO. It ONLY covers the LENDER for the amount owing oon your loan. if you would be nice enough to TOTAL the car, the lender would be happy. Good Luck and BE SAFE

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Single interests insurance is hazard coverage obtained by the lender to cover it's interest in the described property.

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No. A lender placed or forced place policy is only to protect the bank or finance company and you pay the premiums. The policy does not cover the contents or anything except the amount that is owed to the bank or finance company. In these cases the policy was force placed because the homeowner did not keep the insurance that was required by the contract so the mortgagee placed the coverage to cover themselves.

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It covers the finance company. nobody else.

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That insurance will probably cover the BANKS interest in the vehicle and any liability that may be assigned to it, but little or nothing for you.

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As much as they want. Usually, enough to cover the rebuild cost or loan...whichever is greater.


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