Why does my dealership require my lienholder/bank be listed on my insurance to take my car home?
When I bought my new car the salesman said I had to buy a full coverage policy and have the paperwork faxed over. I got the right coverage but they won't let me take the car home because the lienholder isn't listed on my insurance. The car is still covered so why won't they let me take it home?
When you finance a vehicle it is owned by the bank or lender until you have paid the full balance of the loan. The bank or lender requires that they be listed on your insurance policy before you take possession of the vehicle so if the vehicle happens to be totaled as soon as you drive off the lot, or at any point in time during your loan period, your insurance provider knows to pay them first to cover your balance. If they aren't listed and something happens then the insurance company won't know to pay them first to cover your loan balance.