Question

Can force-placed auto insurance be removed/refunded from a loan? If so, to what extent?

I took out an auto loan back in 2015 and sent in the current auto insurance I had to the loan company. During that time I have changed providers and was with the understanding that the new provider was sending my current auto insurance to the loan company. I had issues with logging on to the account with my loan provider for many years and was not able to until this month when I saw a much higher amount come out of my bank account for my car loan. I checked the activity on my loan account and saw that the company had been adding their insurance (roughly 6 times the amount of my monthly payment) every year since as far back as I can see, 2017. I never received any notification from them saying they were going to be adding that to my auto loan balance. If I had, I would have sent them my current auto insurance info at that time. I have maintained sufficient insurance during the period of time the car has been in my possession. I bought the car in Washington but reside in Oregon.

Aug 21, 2019 La Grande, OR

Answer
Kristine Lee

Aug 21, 2019

Yes, you should be reimbursed if you were actively insured during that time. I would call the carrier you had and make sure the lien info is listed correctly, and then obtain all declarations and a letter of experience. Take that to the loan/financing company and they should reimburse you on all the insurance charges. As long as you were in compliance with your loan terms, they can not force-place coverage. If you have any other questions, don't hesitate to ask.

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