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. If you have any questions, feel free to ask.

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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.

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.

Coverage & Claims

If I have gap insurance and totaled my car, but there is no gap between insurance payment and remaining loan balance, do I get a refund?

Not all gap insurance is written in the same manner, so you may have to refer to your insurer to get more information. From my understanding, if you pay off the loan and didn't use gap insurance to do so, they will probably refund some premiums paid back to you.

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.

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.

Coverage & Claims

Why does my dealership require my lienholder/bank be listed on my insurance to take my car home?

<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;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 coverage before you take possession of the vehicle so if the vehicle happens to be totaled as soon as you drive off the lot and at any point in time during your loan period your insurance provider knows to pay them first to cover your balance.
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