Car Insurance Costs

What happens if you can't afford full coverage on a financed vehicle?

Sorry to hear about the situation. Rates for 18-year-olds tend to be high to begin with.

Compare auto insurance rates and save up to $670 per year!

or
Location pin icon
glyph-shield-checkmarkNo junk mail. No spam calls. Free quotes.
Most Recent

Coverage & Claims

Is the lienholder in any way responsible in a car accident?

A lienholder would not be responsible for your accident. The lienholder would receive the claims payout for the vehicle if insurance got involved.

RV Insurance

Can I insure an RV bought from a friend if the loan is in her name?

This situation could cause a few issues. You cannot insure property that you do not own.

Coverage & Claims

My car was a total loss. Will the other insurance send the money to my lienholder?

Sorry to hear about your situation. I would check with your gap coverage provider.

Car Insurance Costs
General Insurance

As a co-borrower on a car loan, what happens if the insurance payments aren't made?

The policy would cancel if she doesn't pay the premiums. Legally speaking, this wouldn't have an effect on you if you're a non-driver.

General Insurance

Can force-placed car insurance be removed on a car that does not work?

Most loan terms require that the financed vehicle must carry the comp and collision coverage. Even if the vehicle is broken-down and non-functioning, you still have to follow the stipulations set by your lienholder.

Coverage & Claims

Is it illegal to carry liability insurance rather than full coverage on a financed vehicle?

Though it's not illegal, you will be violating terms of your loan if you change the breadth of your coverage in favor of liability-only. Your lienholder will then force-place collateral protection insurance to your monthly payments.

General Insurance

Can a lender dictate what my deductible is?

Unfortunately, the terms of your loan can dictate what your coverage deductibles must be. Your lienholder may not necessarily notice right away if you change your deductible, but if they catch on they will add force-placed insurance, also known as collateral protection insurance, as a part of your monthly payments.

Eligibility

Can I cancel insurance on a financed vehicle if I have gap insurance?

In most cases, gap insurance is only applicable if the vehicle is totaled in an accident — not due to mechanical or motor issues due to wear-and-tear. So it would not apply in your situation.

General Insurance

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

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.

General Insurance

How do I insure a car that I'm driving but the title and financing isn't in my name?

Since the car is kept at your home, you would need to insure the car in your name and address. You will also need to list your mother as a driver on the policy since she is the owner, and as an additional interest on the policy since she has a financial claim to the car.
Icon-Agent
Ask an Agent

Get free insurance advice you can trust.

Ask a Question