Question

Can I purchase my own Credit property insurance to cover a vehicle loan?

I financed a vehicle and currently has a remaining balance of about $5400. The vehicle is garaged and has not been driven in over two years. I wanted to know if I could purchase Credit property insurance to cover the loan, something similar to bank forced placed insurance. If so, where do I begin to look for it.

Jul 30, 2018 North Augusta, SC

Answer
Ava Lynch

Jul 30, 2018

To get credit property insurance on your loan you would contact your finance company. They would be able to help you find a company that will provide that services. It's not something you can purchase online. However, even if you are not driving your car but the car is registered you are required to have minimum liability insurance, that  comprehensive and collision coverage to your auto policy. That coverage will cover the value of the car in the event of an accident, fire, theft, or vandalism. If your car is worth less than your loan you can also talk to your finance company about adding gap insurance to cover the remainder of the loan in the event of a total loss. Most finance companies require you to have show proof of insurance on the car with comprehensive and collision added. I would start by talking with your finance company to see what their policy is and what options they have for you. Good luck and if you have any further questions, don't hesitate to ask.

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