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.

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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.

Eligibility

I was billed for forced car insurance even though I already had it

While it can vary by the individual policy procedures of your lender, they should be able to backdate those charges if you're able to show proof of insurance for the duration of the loan. You can request a policy declaration or binder from your insurance company which will show the date of policy inception.

General Insurance

My bank added forced insurance that is too expensive

Because your bank has an invested interest in the vehicle, they have a right to add insurance to it if you fail to do so. The easiest way to avoid situations like this is to always keep your insurance up-to-date and paid for.

General Insurance

How far back can I be charged for forced coverage?

It depends on the terms of your loan contract. In most cases at any point of time the vehicle was not insured they will force their own coverage on the vehicle and add it to your loan.

Coverage & Claims

Can the bank force me to get coverage on my vehicle?

If you have a loan from that particular bank and in the loan contract it states you must have auto insurance, they can force coverage on you. Because they have an invested interest in the vehicle through the loan, they will require it to be insured.
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