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Is there a charge by a lien holder if you do not have insurance on the vehicle?
Wiki User
∙ 12y ago
Of course. The financing agreement that you signed requires you to have full coverage insurance and to make sure that they receive a copy of the insurance with their name listed as leinholder on the policy. This assures that they are paid if there is an accident and that they are notified in case of a cancellation of the insurance. There are laws protecting the leinholder in every state. If you break the contract with the leinholder they have the right to repossess the vehicle as well as the put what is called forced place insurance on the vehicle. This insurance protect the leinholder's interest only in case of an accident or damage to the vehicle. This coverage is physical damage coverage only and does not include liability or any other coverages and the premium is very high. The premium is charged to your loan account.
Wiki User
∙ 12y ago
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Can a lien holder file an ins claim on customer's auto policy?
No a lien holder can not file a claim against the insurance company as they are not the named insured, you are. Although if there is a lien on the vehicle the insurance payment for damages to your vehicle will be in your name and the lien holder name. They then might require that you fix the vehicle so they can protect their interest in the vehicle. each lien holder is different. CORRECTION: If the lien holder is named on the policy and the vehicle has been repossessed, the lienholder has a right to recovery under that policy.
Is it the responsibility of an insurance company to notify the lien holder on a vehicle if any change in coverage?
Yes, they are required by law to notify your lien holder of any change in coverage.
Who owns the vehicle you or the lien holder?
Well, you own the vehicle subject to the lien. You cannot sell or refinance the vehicle until the lien holder is paid. If you don't pay the lien, the lien holder can repossess the vehicle. So you own it subject to your paying the loan.
Who needs lien insurance?
The lien holder would. A lien holder has a financial interest in the property
Does an insurance company have to pay the lien holder directly after an auto accident?
An insurance company generally does not pay the lien holder directly. The vehicle owner is responsible for paying for insurance coverage and will often deal with the insurance company themselves after a collision has taken place.
How do you receive a vehicle title that still has a lien?
You can't. If a vehicle has a lien on it the lien holder is the owner of record of the vehicle.
Does the lien holder of a vehicle have the title?
No it does not
Lien holder on your vehicle?
The lien holder is the person or firm, you borrowed the money from to purchase the car.
Who gets insurance money on a total loss policy holder or vehicle owner?
Lien holder is paid first, any balance goes to registered owner.
Is it legal for an insurance company to let you get liability insurance on a vehicle that has a lien holder on it?
Certainly, liability insurance has nothing to do with who owns the vehicle. It deals with protecting the owner of the vehicle if sued as a result of an accident. Collision and theft protect the owner of the vehicle from loss.
Can i Put a lien on a vehicle to get my name on the title?
A person or a company that puts a lien on a vehicle is a "lien holder" that is on the title. It is not recognized as ownership.
How much can a vehicle be sold for once a lien has been secured?
If you have a lien on your vehicle, you can sell it for any amount. The vehicle is still subject to the lien which means that the purchaser can lose the vehicle if the lien holder collects on it.
