Question

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

My daughter is 18 and can't afford the full coverage on her vehicle.

Jun 26, 2020 New Orleans, LA

Answer
Ross Martin

Jun 26, 2020

Sorry to hear about the situation. Rates for 18-year-olds tend to be high to begin with. How the lean-holder responds really depends on how her loan is set up. You may want to get a copy of the terms to see what the outcome may be. It's likely that they will do one of the following: They will either force place insurance coverage of their own and charge it to her loan (making her pay a higher bill on their end) or they may just say she breached the loan terms and repossess the vehicle. In either case, I would continue to shop around and see if you can find an option that might work. 


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