Can my finance company take my car if I don't get full coverage auto insurance?

TINA R

your insurance company should not have let you get just liability on the car. i don't know if the insurance company can take the car. the insurance company is not just trying to protect themselves, but you also. if you couldn't afford full coverage, then why did you buy a car that needed to be financed?

sensible_man

Yes. When you finance a vehicle, the finance company requires full coverage to protect their investment. You signed a contract which stated you would carry the full insurance so, if you don't, you are breaking the contract.

Florida~Girl

yes, the reason is because technically they own the car! until it is fully paid off you pretty much have no rights to say how to insure it.. same as if you were leasing.. your driving the car, but its basically not yours.. its the dealerships

you need to have full coverage.. but you can tell the insurance company, i need full coverage but would like the lowest limits (that are legal) in whatever state you are living in.. that is acceptable..but it must be full coverage until you pay it off!

entidtil

I'm not sure if they can take it, but I know of no loan company in the entire USA that doesn't require full collision and comprehensive coverage on "their" car. Typically, if you don't provide the coverage, they will buy the coverage for you at a cost about 5 times what you would pay if getting it on your own. They will add that to what you already owe them. Hint: Just go and get the coverage you agreed to get when you signed the loan papers

Katasha

It depends on the wording in your purchase contract. Some will state full coverage is needed or they can reclaim the car, others state if you don't provide full coverage, they can put the required insurance on the vehicle and make you pay for it by adding it to your monthly payments. (Then if you fall behind on the payments, they can repossess the car for default.)

It's *always* less expensive to carry your own insurance on the car than to let them add their own. They won't care about competitive rates or discounts you might be entitled to.

Liability only covers the other person's car if you cause an accident, it pays nothing for your car. So if you total your car, you're liable for any remaining payments, as well as repairs, and can also be liable for repairs or medical costs to the other party that your insurance didn't cover.

Bottom line, if you can't afford the car with full insurance, then it's too much car and you need to downgrade.

mstonya_1

if its a brand new car they can

Shelby B

For car insurance the most efficient way to get a low rate is do a rate comparison on auto policies. Make certain that you compare similar policies with the same limits, auto type, location, etc so that all options are a good comparison.

What I always recommend is an internet comparison quote at http://www.InsureAutoNow.info since they have discount insurers and can give many prices on car insurance polices.

Duh

Get it....I just got my car taken this morning.

benson

u need to get full coverage eventhough its expensive and in time or you might end up investing more than ur returns moneywise.. i found a link that give you some ideas for the lest coverage http://www.buzzle.com/articles/auto-financing/

Enter Your Message or Comment

User Name:
User Email:
Post a comment: