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.

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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.

Eligibility

Can I get storage insurance if my auto insurance is being canceled?

Most financing companies will require you to have comprehensive and collision coverage which means you would not be able to get storage insurance. Check with your finance company to see what options you have.

General Insurance

Can I get liability insurance for a financed car, and can I get gap insurance without full coverage?

Typically, no. You don't want liability only because the car will not be sufficiently protected.

Eligibility

Can I get car insurance with just a state ID in Kansas?

Yes, there are several companies that will insure you without a license. Some companies will require you to get a license within a certain time frame so make sure to find out the details before getting a policy.

General Insurance

How do I get insurance on a vehicle I plan to finance?

Generally, you need to shop for car insurance before financing the car. No matter where you purchase a vehicle, dealerships and buy here pay here car lots will not let you drive off the lot without providing proof of insurance first.

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

Will my insurance change after I pay off the loan?

The financial status of your vehicle does not impact your rates. If you decreased the coverage to liability only then you would see a significant decrease in your rates.

General Insurance

Can I take insurance off a vehicle that is financed?

In most cases, if you owe money on a car you have to have insurance on it. This is the case even if the car is parked.

General Insurance

Can my bank charge me for car insurance?

Finance companies usually require you to have insurance on your car while you are making payments. Companies can back charge you for not having insurance - which is essentially called Collateral Protection.
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