Will I default on my loan and/or get my car repo'd if I cant pay my insurance and they cancel it?

Gambit

If the purchase was financed by a bank/financial institution then the insurance company will inform them that the policy is being cancelled for non-payment. The financing company has three options: 1) send you a letter giving you 'x' number of days to place insurance; 2) immediately place insurance on the vehicle covering THEIR interest only (not yours) and charge you accordingly; 3) repo. Which they'll do depends on the financial institution. If the vehicle is leased, once again the insurer will notify the leasing company that the policy is being cancelled for non-payment, after which the repo company will be showing up shortly.

DoH

The bank will put insurance on the car and add the cost to your loan. If you stop paying the loan, they will repo the car.

Insuranceman

It all depends on WHO is financing the car loan.

If it is a bank or other type of lending institution, they will probably just add "single interest" insurance to your loan. Then, when you think you have the car paid off, you still owe a couple of thousand dollars on the car note.

If it is a "buy here-pay here" car lot, LOOK OUT FOR THE REPO-MAN!! They will normally pick up the vehicle since you defaulted on your agreement to them.

You might consider taking your income tax return (if any) and buying car insurance.

Good luck, drive RESPONSIBLY and I hope this helps!

Linda K Texan for Life

Your ins. secures payment for the insured article. In this case your car.So if you do not have ins. then that does change the terms of your loan. They need to secure their loan and in doing so they can call for payoff. You pay in full now or return the article or insure the article in question. For future reference this includes home ownership to.

Bob T

probably

Mr. H

it doesn't really make a big different where you live in america and the other thing is if you really dont want your car to get repo'd then you tell them that you sold your car to get money and tell them a low amount of money that you sold it for and give them a little money but really just keep the car at your cousins house or someone you trust

Ashes

The first thing to do is ask your insurance company for a payment extension. They can probably give you up to 10 more days.

Secondly you can get a ticket for driving around without insurance. The car can be repo'd by the cops - I don't know MA laws though.

With regards to your loan - no your vehicle won't be repo'd for missing your insurance payment . However in your contract it may state that you agree to keep insurance on your vehicle and if the finance company finds out they can do whatever they want (times are hard) - again if they find out.

Read your contract but try the extension first. If you qualify for a payment extension on your loan that might help too.

No. As long as you keep repaying the loan, they won't take your car just because you're uninsured. All the bank/loan agent wants is for you to regularly make your loan payments.

However, you can't drive your car uninsured. That's illegal. I know lots of people do it, but the penalties in MA if you get caught are stiff. You are fined somewhere between $500 and $5000, or else get up to 1 year in jail, or both. Additionally, you are charged the cost of a year's insurance on your car. Moreover, your license will also be suspended and they can suspend your registration on your car as well.

So all in all: you can let your insurance lapse and nobody will take your car as long as you keep making your loan payments, but you shouldn't actually drive it while uninsured.

bubba

No just make sure you dont drive it until you pick up a new policy or renew your current one

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