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Question

Will the insurer research to see if my car is financed?

Is it standard for an agent to inquire about the financing of an auto? Will they review the application to see if it is financed, leased, owned outright? Will they cancel the policy if they application does not match the auto’s true financial status?

Agent Answer

Ava Lynch

While it can vary by car insurance company and individual agents, some may probe when doing quotes to see the status of the vehicle to make sure you are getting the correct policy type and the correct coverage. If you have a loan or lease on the vehicle, you’re more than likely required to carry gap and collision and comprehensive coverage.

Moreover, some insurance companies won’t cover a leased vehicle because of the coverage they’re required to have (gap insurance). So, they could also be looking into the nature of your car ownership to avoid having to cancel the policy.

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