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Can a auto insurance financing company decline insurance coverage from an insurance company?

Insured was told by Auto Financing company that they had to switch insurance company, because they didn’t like the carrier they currently have. The AFC stated that they would need to force place insurance on the car if they don’t switch carriers. Do you have information that could help?

Agent Answer

Ava Lynch

Although that seems a bit odd, I can’t answer that question. The insurance companies that a finance company will approve is specific to each financial institution. You would want to contact the finance company to get a list of approved insurance companies to avoid having the force-placed insurance added to your loan. Good luck and if you have any questions, don’t hesitate to ask.

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