Question
Can a bank add insurance to my loan when I already have insurance?
I have full coverage insurance. My car payments started at $273 per month. Suddenly, my payments started going up. When I called the loan company, they said that they had not received my proof of insurance. My agent at AAA has faxed them my declarations page twice this week, but my new bill is even higher. Is this my fault?
Answer
This sounds like a processing error. Short of that, I would say that this issue is unfortunately too specific to your policy for me to accurately advise. You'll need to contact your loan company as well as the insurance company for further help. If it is an error on the part of the company, they should honor your continuing coverage and backdate whatever payment that was made. Having said that, banks that finance car loans can force the buyer to carry insurance. This is known as collateral protection insurance. This lender-placed insurance is typically added to the payments of drivers who are not carrying adequate insurance coverage. Good luck clearing this up. Â
Insurance is complicated, but it doesn't have to be.
The Zebra searches all of the top insurance companies, in one place, so you can compare the cost and coverage you need to protect your car, home and other property.
Step 1: Tell us a little about yourself
Choose an insurance product and enter your zip code to get started.
Step 2: Sip your coffee while we find the best quotes
Enter the necessary information and then sit back while we find quotes from 100 top insurance carriers.
Step 3: Compare your quotes
Compare quotes side-by-side to find the right match for you, whether it's home, auto, or more.
Step 4: Let our agents do the hard work for you
Once you pick your policy, our agents are here to get you over the finish line. Then just relax and enjoy your savings.