I was billed for forced car insurance even though I already had it

I read your article on forced auto insurance. I got a loan for a car in 12/17 and showed the dealer proof of insurance but I didn't add the lender to the policy because I didn't know I had to. Five months later, the loan shows a $2500 fee for forced insurance, even though I had proper insurance they couldn't verify. Can they collect this fee if I never added them as the lienholder to this policy?

Jun 7, 2018 Glendale, AZ

Ava Lynch

Jun 7, 2018

While it can vary by the individual policy procedures of your lender, they should be able to backdate those charges if you're able to show proof of insurance for the duration of the loan. You can request a policy declaration or binder from your insurance company which will show the date of policy inception. This should be enough to get the fee waived. If not, I would try to speak to a manager.

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