Repossession
Insurance

If your car has been repossessed are you required to continue insurance and for how long?

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2015-07-15 19:34:28
2015-07-15 19:34:28

Once your car is repossessed, it is covered by the repo companys and the lenders VERY expensive ins. No need for you to maintain coverage UNLESS you plan on redeeming it ASAP.

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

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no, but it is recommended. the repo co has insurance and is bonded for this type of situation. you will have to provide proof of repo to your insurance co.

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The owner of a vehicle that has been repossessed, cannot afford to make their payments, so it makes sense that they cannot afford to perform the required scheduled maintenance on the vehicle. This is not always the case but IMO, I would never buy a repossessed vehicle, unless it had extremely low mileage of say less than 20,000 miles.

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Talk with the adjuster and explain the situation and I'm sure they will work something out. They may still have to issue the check to you and the lienholder because you are the person who has the contract with the insurance company.

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IF the ins. co. told the lender the policy was canceled, then you were in DEFAULT and the lender will repo.The lender and the ins. co. will have to get that straightened out.

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Absolutely. What you have is a financial contract. It is the same as any other finance agreement. You are required to continue to make payments and interest will continue to accrue until the balance is paid off. In order to keep whatever is left of your credit rating you should be advised to make your normal payments the same as you have been doing in the past.


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