I take it you mean, if your car IS repossessed. In that case, IF you dont plan to redeem it, NO. NO car, NO insurance. Once the lender repos the car, they are responsible for the insurance coverage.
No, but unless you are paying cash for the vehicle the lender is going to want insurance coverage on the vehicle until it is paid for in case something happens to it. Therefore, the lender is going to want a policy number insuring their vehicle is covered.
The loan could be called due in full; and, if not paid, the vehicle could be repossessed. But usually notice will be first provided, requesting proof of reinstatement of insurance coverage. The lender of the funds used to purchase a vehicle asks for a number of terms when offering a loan to a prospective borrower. The purchased vehicle is the collateral, or security, for the loan. Lenders reduce their risk, making the whole auto loan business possible, by reserving the right to take possession and ownership of the vehicle should the borrower default, or stop paying. One of the conditions the lender almost always places on the borrower is the requirement that the borrower insure the vehicle with "comprehensive" insurance at a level that protects the lender's investment in case of vehicle loss or damage. A lien in favor of the lender, recorded on the title, legally protects the lender. When the insurance is written on a vehicle purchased with an auto loan, the terms usually provide that payment upon a vehicle loss goes first to the lender. Thus the lender has and has record of a potential obligation to the lender. So when the policy holder stops paying, the insuror will usually notify the lender that coverage is no longer in effect. The lender will then likely notify the borrower that he/she must immediately reinstate insurance coverage and provide proof thereof. If proof of insurance is not quickly sent, the lender can consider the borrower to be in default of the loan terms, even though loan payments are continued. Depending on the specific terms of the loan agreement, the lender can call in the loan, requiring immediate and full payment--payment of the entire outstanding principal. Repossession could follow a refusal to pay.
Liability Insurance, or Rather Financial Responsibility are required by Law. Comprehensive and collision insurance is required by the terms of your finance contract with the lender. Failure to comply with the terms of your purchase contract can result in the following 1. Forced place coverage by the lender, which is much more expensive than buying the coverage yourself. The amount will be added to your finance note 2. Vehicle Repossesion by the lender. Failure to maintain your lender required coverage is a defaulting breach of your purchase contract.
Since you have a loan you should be required by the lender to have full coverage insurance which will pay you the value of the vehicle. With out insurance you are still responsible for repaying the loan no matter what happens to your vehicle. It is not the lenders fault your car was stolen and wrecked...
You are required to have liability insurance on any vehicle. The lender may require you to have full coverage as a loan condition.
Yes, if you don't have full coverage insurance the collateral is in jeopardy. In other words if you were to total your car the lender has no collateral.
Auto insurance will cover the theft of your vehicle if you maintain comprehensive coverage. Comprehensive coverage is generally sold in conjunction with collision coverage. However, unless there exists a lender that requires collision/comprehensive coverage, it is usually not mandated by law as it is considered "first-party" coverage (designed to protect the owner only). Comprehensive coverage also applies to the theft of belongings in the vehicle if they were permanently affixed to the vehicle. For example, if you have an after- market stereo system and sub-woofer that is stolen from your vehicle, it is covered under comprehensive coverage. However, if you leave your purse in the car and it is stolen, it is not covered because it is not permanently affixed to the vehicle.
Yes. If you are making payments to a car lender, you are generally REQUIRED to insure the vehicle. If at any point they discover that you are NOT insuring the vehicle, they have every right to force coverage as they have a financial interest in that car.
In general, yes. Usually, finance agreements provide that the borrower will keep the vehicle insured and will show the lender as a "loss payee" on the insurance. This means that the insurance settlement check will be issued with the lender's name on it too, as well as the insured's. The lender is concerned that there arefunds available to pay for the repair of the vehicle in the event of a collision. The lender loaned money on the vehicle based upon its undamaged condition, and will wish that the vehicle retain its value. Therefore, if the borrower has not kept the car insured, the lender will generally obtain "single interest" collision coverage, which will protect its interest in the collateral as discussed above. The cost of that insurance is initially paid by the lender, but charged back to the borrower by an additional amount added to the loan balance.
In my state you only need to have Liability insurance the get a title and register the vehicle. If, however you have a loan on the car the lender will require you to have full coverage.
Yes, if the contract requires that the borrower carry insurance coverage. If the borrower fails to adhere to any of the requirements stated in the written agreement the contract is in default and the lender has the legal right to recover the vehicle.
IF your loan contract specifies that you must maintain insurance covering the vehicle, the answer is YES. Just an echo of the previous answer, most major lenders require that the vehicle maintain full coverage insurance. It states in your finance agreement that the vehicle must remain insured or it can be repossessed.
Any lender requires insurance if the vehicle is financed.
IF you plan on getting it back, dont drop it. If you're NOT getting it back, drop ASAP. The lender has coverage. Good answer. If you can't afford to get the car back, drop the insurance. You should not have coverage on the vehicle that is not longer in your possession. Let the lender assume the responsibility. Why pay for something you don't have anymore?
"The major insurance companies that provide coverage on Audis are; American Family Insurance, State Farm, and Progressive. Other insurance companies are available directly from the dealer at time of purchase from the lender."
If you are in the process of quoting auto insurance, chances are the term comprehensive coverage has come up quite often. Comprehensive auto insurance coverage is a coverage that will pay to repair or replace your vehicle in the event of a covered loss up to the fair market value of the vehicle. Covered losses that fall under comprehensive include: fire, theft, vandalism, hail, and wind damage. Falling objects and hitting a live animal also fall under comprehensive. If you are financing your vehicle, you will be required to carry both comprehensive and collision coverages to satisfy lender requirements. The state does not require comprehensive or collision coverage.
The first thing that they will do is to put forced place coverage on the vehicle. This is a very expensive type of insurance that only protects the banks interest and only pays the bank. The premiums are added to your account and you are responsible for paying for the insurance. This insurance only provides physical damage coverage and will not pay for damage to your property or anyone Else's. It does not provide liability and does not meet the state requirement to allow it to be driven on the street. The second thing they will do is to repossess the vehicle because you have violated the contract that you signed with the lender to keep the required coverage on the vehicle. Oh yes, and the cost of impounding and storing the vehicle after it has been repossessed will also be charged to your account.
I would not think so, but, your lender does require that you carry collision insurance on the car, which is the lender's collateral. It depends on what the note you signed says about this. Read it.
A vehicle may not be covered for the same coverage by more than one company.However, it may be the case that liability coverage is with one insurer and physical damage coverage is with another. This can happen in the instance, for example, of a financed vehicle, where the lender obtains "forced-placed" physical damage coverage on the car to protect its interest in the collateral. The lender may do this if the owner/borrower does not produce proof that he/she has obtained physical damage coverage, despite having obtained liability or other required coverages.
Florida, like all other state, has set minimum coverage requirements for drivers. This applies to vehicles that are not financed. If the vehicle is financed, additional coverage is required by the state and the lender to cover the value that is financed so that the lender is paid in the event the vehicle is a total loss. You can read about Florida state law regarding insurance here: www.flhsmv.gov/ddl/frfaqgen.html The rate depends on various factors, so your best bet is to contact your current agent to explore your options.
Yes, most lenders require full coverage. Ask the lender.
Ordinarily, the lender will require, as part of the terms of the loan, that the vehicle be kept insured for physical damage, so as to protect the value of the collateral. Damage can be done even if the car is not driven, such as by fire, storm damage, or similar occurrences which could be covered by comprehensive coverage. The loan documents will generally provide that in the event insurance is not maintained, the lender can secure physical damage coverage on the vehicle to protect its own interest. The cost of that "single interest" coverage is usually disproportionately high and will be added to the loan balance.
from a General AgentYes you can start the policy and pay premium but the actual coverage will commence when you take possession of the vehicle.
Single interests insurance is hazard coverage obtained by the lender to cover it's interest in the described property.