General Insurance

How do you insure a car that is not being driven but is held for collateral by a bank?

Whether or not the vehicle is being driven, you still need the state minimum liability coverage — in Mississippi, the state-required liability limits are 25/50/25, meaning you are required to carry $25,000 per person and $50,000 per accident of bodily injury coverage and $25,000 in property damage coverage. In most cases, if the vehicle is used for collateral for a loan, the loan company will require you to have comprehensive and collision coverage to protect your vehicle.

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Coverage & Claims

Can someone else register and insure a vehicle I finance?

If you are financing a vehicle you need to have it registered in your name. You can put the insurance in someone else's name but you would need to be listed on the policy.

General Insurance

Can lienholder be responsible in car accident?

If you keep the car registered in your name, there is a possibility that you could be held liable for damages that exceed the driver's policy. It is not common, however, there is still a chance.

Coverage & Claims

Can my ex insure the vehicle I am financing?

Yes. Your ex-wife can insure the vehicle as long as you are listed on the policy as a driver (because you are the one financing the vehicle) and listed as the additional interest since you have a financial stake in the vehicle.

General Insurance

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

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.

General Insurance

How can my insurance company check for a lien if I'm in another state?

Your insurance company would not verify a lien. The insurance company would need to add a lienholder to the policy.

Coverage & Claims

Why is my insurance company denying my claim

Since your friend was driving your car for an extended period of time, they would need to be listed as a driver on the policy. If they are not listed on the policy and something happens, the claim can be denied for not listing all drivers of the car.

General Insurance

Can I suspend insurance on a vehicle I am financing?

The short answer is no for two big reasons. One; that's not how insurance works.

General Insurance

What should I do with my car insurance after I pay off my car loan?

Congratulations! Paying off your car is a huge accomplishment; way to go! 1. Yes, let your car insurance company know: It is a good idea to notify your car insurance company of the loan payoff so that you can remove the lien holder from your policy.

Eligibility
General Insurance

Car insurance for a car I own but don't drive

Here's what I recommend: because you don't have a drivers license, don't have a driving record, and won't be using the vehicle, I would have your son get car insurance for the vehicle but I would use your bank/credit card information to pay for it. Most insurance companies will allow you to add another consenting individual's payment information to the insurance policy - as they want to be paid for the policy regardless.

Coverage & Claims

Does car insurance cost less for a financed or owned car?

To my knowledge, no car insurance companies use ownership of the insured vehicle as a rating factor. The only way your premium would be impacted by having car loan is if the bank or dealership requires you carry additional coverage you wouldn't carry yourself for a vehicle you own.
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