Repossession
Insurance
Auto Insurance

When your car is repossessed when do you cancel your insurance coverage?

232425

Top Answer
User Avatar
Wiki User
Answered
2011-01-10 19:20:18
2011-01-10 19:20:18

The same day that you determine you aren't getting it back. It would be wise to wait until then because if the bank repo'd it to kinda just remind you that being 3 payments behind isn't a good thing, you might get it back and then you don't have to go through the whole insurance application process again.

AnswerYeah for sure do not cancel anything until it is no longer in your name either. I'd wait until the title transfer is complete as well. AnswerYou should cancel your insurance the moment your car is repossessed.The moment the car is hooked up(as the above two repo morons will tell you)it is no longer your car.So if you would like to cover someone elses vehicle with your insurance you go right ahead but you are wasting your money and your insurance coverage.Dishonest repo guys(like the above two scumbags) want you to keep the insurance on the vehicle so if they damage the car or steal stuff from it it will go on your insurance.

ANSWER Amendment:

Never cancel an insurance policy until you have a new policy in place. If you do it will cost you more in the long run. Insurance companies are looking for loyalty and longevity without lapse in coverage. Sometimes you can possibly suspend, cancel or reduce coverage but never cancel it.

The moment the vehicle is repossessed does not release you from the contract agreement. Read it. In most cases until the vehicle is transferred out of your name via the title of ownership, you must maintain physical damage coverage or they can force place it and take the premium out of the proceeds.

Reduce to minimum but don't cancel it.

001
๐ŸŽƒ
0
๐Ÿคจ
0
๐Ÿ˜ฎ
0
๐Ÿ˜‚
0
User Avatar

Related Questions


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



If your contract requires full coverage and you do not have full coverage, you are in violation of the contract.


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.


Of course not! It wasn't stolen or wrecked, it was taken from you for failure to pay on the loan!Be sure to cancel the insurance.


If it's no longer your vehicle, you don't need to insure it.


No, only when you are required to have full coverage insurance and you dont, and the obvious that you do not make a payment.


YES, if you are in DEFAULT of the contract (NO ins. coverage) they can repo.


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.


if you don't plan on getting it back that is what to do. but most insurers in pa are notifying pa that you canceled insurance ant they suspend your plate for 90 days.


It would make no difference as long as they had coverage on the date and time of the accident. They can cancel the policy after the accident and coverage would still be provided.


I don't see why not - but if it's the only car on your policy ask your agent to give you a "hired and non-owned" policy so you still have liability coverage if you drive someone else's car or rent one. Also, if you plan to replace the car right away or settle the issue with your auto lender, you're probably better off not canceling the coverage.


If you owed money on the car (which is probably why it was repossessed), you need to pay what they demand. Check the paper you signed when buying the car if you think they are 'demanding' something different than you signed. Your girlfriend was smart to cancel the insurance, since a repossessed car does not need insurance. You cannot sue your girlfriend for calling the car lot, or for cancelling the insurance, because you cannot show DAMAGES to yourself.


Have your insurance agent transfer the insurance from the old car to the new car. You will then have no loss of coverage and will be able to get credit for the "1 year no claims" at the appropriate time.


You can budget your car insurance by changing the coverage that you have on your car. Liability only insurance, or your state minimum is going to be the cheapest insurance but doesn't provide much coverage. As you add coverage the price goes up.


If the car is leased or has a lien on it (meaning you have a loan out on it) it CAN be repossessed for letting the insurance lapse on it.Cars that have liens on them are required to carry full coverage insurance on them by the bank. This is because until you pay off the loan the bank technically owns your car, and they want to protect their investment.If you are unsure if you have a lien on the car, take a look at the title. If there is a lien, it will show on there. If you are thinking, "How will they know?" here is the answer to that. When your insurance coverage lapses (runs out/expires) and is not renewed, the ins. company notifies the DMV of your state. Under most state laws, you are the given an average of 14 days to resume insurance coverage or are required to surrender you license plate(s). If the 14 day average passes and you have not done either, the bank that has the lien on your car is notified (because the sate DMV has those records). The bak will then attempt to call you and rectify the situation. If they are unsuccessful, they have the car repossessed.


I Think You Can Cancel Your insurance....idk That's Just My Guess..


Not if you now only have liability coverage.


If you have full Coverage Auto Insurance, Then the Comprehensive and Collision portions of your coverage would pay for damages to your own car. If you just have liability insurance only. Then you just have coverage for the other car and there is no coverage for your own vehicle.


Progressive does offer car insurance coverage for classic automobiles. Other companies may or may not offer the coverage depending on their available policies and coverage.


When you plan to sell your car you should notify your insurance company of the pending sale. It will provide you with instructions on how to transfer title properly, surrender the plates and cancel the insurance if you aren't transferring the coverage to a new car. Generally, the insurance company won't cancel the insurance until the plates are turned in or transferred to another vehicle through the RMV. That means the company will continue to bill you until the transaction is properly completed.If the insurance was paid for and the policy is cancelled during the coverage year the company will issue a refund based on their own calculations.


Trade Car insurance will provide you coverage when you are between automobiles, and is only a temporary coverage, not to be confused with regular auto insurance.


The expiration date, or the day you cancel is the official end of insurance coverage. Period. The 30 day "grace" period is a myth. If you just let the policy expire by not paying the renewal premium, they will PROBABLY reinstate your coverage retroactive to the expiration date, but I would not rely on that. If you CANCELLED, that's the end of your coverage.


Yes, if there is a breach of the lending contract, such as non payment of late fees or penalties, lapsed insurance coverage and so forth.


It depends on whether or not you carry comprehensive coverage on your car. Comp is an optional coverage if you own the car outright and may be a mandatory coverage if you have a loan on it. But the comp coverage would only pay for repair to the car. If you have items in the car that were stolen, however, they would actually be covered by your homeowner's or renter's insurance and NOT your auto insurance.



Copyright ยฉ 2020 Multiply Media, LLC. All Rights Reserved. The material on this site can not be reproduced, distributed, transmitted, cached or otherwise used, except with prior written permission of Multiply.