I believe it depends on the state, but as far as I know, if you have to have full coverage on a financed car, it doesn't matter where it's financed. If you still have questions, ask your insurance person, they'll know the answer.
You need to call An insurance Agent that specializes in High Risk Auto Insurance to find coverage. An Auto Dealer is the worst and most expensive place you can ever buy insurance. You should never buy your auto insurance from a car dealer or a bank teller, They are not licensed, trained or experienced in the placement of Insurance Risks.
No, auto insurance does not offer this type of coverage. You generally have the option of purchasing this coverage from the auto dealer when you finance the automobile. Sometimes you may be able to purchase it if you are a member of a credit union or such. You might even call the finance company who financed the vehicle and see if it's possible to add it if that is your desire. Read the terms as these coverage are often times overpriced and have lots of small print.
a dealer should have a bond. The coverage on the vehicle is like having a liability policy. If the dealer was driving the car and had an at fault accident, he will have to pay for repairs on his vehicle and the bond will cover the other persons car. Once you buy a car from a dealer, you are responsible for purchasing insurance for the vehicle, the dealer is no longer liable. In fact, the dealer should require that you have insurance before you drive the vehicle off the lot.
Firstly, talk with your insurance agent before signing for the new car. Dealers will sell you GAP coverage whether you need it or not and their GAP is a very expensive coverage that is paid up front and then financed so you pay even more. The only time you need GAP coverage is when the financed balance is more than the value of the car. If you are trading in another car you may have a lower balance than the book value or the new car. In any case you can purchase GAP from your agent and cancel it after a year or whenever you feel that the loan balance is lower than the value of the car. If you buy from a dealer you pay for the life of the loan plus interest.
I'm sorry I don't know if there is a legal maximum that auto dealers can charge for gap insurance. I do know that you need to speak with your auto insurance agent prior to purchasing gap coverage. When a dealer sells you gap coverage what they do is prepay the entire premium for the term of the loan and add that into the amount financed. After that you are charged whatever interest rate you pay on the vehicle. The auto dealer is paid a large commission for selling this gap coverage and receive all their money up front. Most auto insurance companies offer the same coverage for a very small premium that is simply an endorsement to be added onto your current policy. I think mine is about $6.50 for a six month period. You only need gap coverage for the first couple of years that you own a new car. GAP pays for the difference between the value of the car and the amount owed on the loan. After a couple of years the falling amount owed on the loan becomes less than the value of the car. If you purchase from the dealer you are prepaying for the entire 5 or 6 year time of the loan period.
Insurance will pay to repair, replace, or pay the actual cash value of the vehicle at the option of the insurance company. On a new vehicle that is financed I always recommend that the client purchase GAP coverage. GAP coverage pays the difference in the actual cash value of the vehicle and the balance of the loan or lease payoff. This is a good idea especially in the first year or so after the vehicle is purchased. The first year a new vehicle depreciates so much that the GAP coverage can really help out. The cost of GAP insurance from you insurance company is much less than purchasing it from the dealer.
Sure. You are much better off to get GAP insurance from your insurance company than by buying it from the dealer. If you buy from the dealer you will pay lots of money for the insurance plus you pay for GAP insurance for the life of the loan in advance then pay interest on it as it is financed in your loan. GAP insurance is coverage for the difference in the actual cash value of the vehicle and the amount owed on the vehicle. Reason shows that you will only be upside down in your loan when you first buy a new car because the value decrease fast the first year while the loan doesn't reduce as fast. You can purchase GAP coverage from your insurance company for a few dollars ($5-10) for a policy period and when the loan balance drops below the value of the car you can drop it. Say the first two years of a five year loan you owe more than the value though it is probably less. For two years you may pay $40 for the coverage from an insurance company then drop the coverage. From the dealer you paid $850 plus interest and you can't cancel it even though it will not pay off anything after the first two years. To answer your question, most insurance companies will let you add GAP coverage for the first 6 months after you add the car to your policy.
No. If you've got a few cars in mind it would be best to get a quote from an insurance company on the possible cars you may buy. Then before you leave with the car call the insurance company and make a payment for the car insurance for the vehicle you actually bought. If the vehicle is being financed or leased, the dealer will not allow you to leave with out proof of the coverage being faxed over.
Absolutely. Even if you pay cash for the vehicle you will need to prove that you have liability insurance in order to legally drive off the lot. If you are financing the vehicle you will have to show that you have liability and physical damage coverage before driving off the lot. The dealer will contact your insurance agent to verify that the coverage is in force and will add the vehicle to your policy with the coverage that they require and that you want.
Temporary Dealer Gap insurance is considered the same as having no insurance at all. Most companies don't recognize dealer gap insurance because they are only excess secondary coverage policies, No Liability coverage is generally included in them. Generally if you have a lapse of 30 days or more, or if you have had continuous coverage for less than 6 months, then you will pay 5 to 10 percent more on premium. Beware of GAP Insurance, I've seen more than a few people who got burned on these after they discovered the gap only covered a portion of the vehicle and offered no liability coverage for the driver. * As a Broker, I can tell you it really depends on: the length of time, WHY the gap, your past record, and the individual underwriting policy for each insurer. Be SURE to tell any prospective broker/company of this gap or you could be without in the end!
Usually the lender, not the dealer, will just tack it onto your payments, but yes, you probably signed an agreement to insure contract. However, they do not want the car back, so, most of them will just add it, then ad it to your payment. The dealer, unless it was a buy here, pay here, has nothing to do with the car, once it is financed. The bank owns it, once they finance it.AnswerYep, that's the way it works. Finance Company always requires Full Coverage Auto Insurance until the car is paid off. It's in your finance contract After pay off you can carry just liability if you like.
Not Exactly. You Will Have To Carry Life Insurance, Probably Some Type Of Other Insurance, Plus Taxes, Filing Fees, Ect. Check Into It With You Dealer And Bank. Good Luck If you mean financed for the loan balance, that would depend upon whether or not the borrower qualifies for the loan amount, based on credit rating, income, etc. The buyer will be required to pay out of pocket, sales tax, licensing fees (registration, titling, etc.) and carry full insurance coverage until the vehicle is paid for, those are costs that are not included in the purchasing contract
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