My bank has put insurance on my car since my insurance company cancelled my policy. What does this cover from my bank? They tacked on $1200.00 to the balance of my loan? can anyone explain??
2006-08-08 11:08:55 · 5 answers · asked by beckett's girl 3 in Cars & Transportation ➔ Insurance & Registration
also, what would happen if my car was stolen?
please help and no lectures!!
2006-08-08 11:30:54 · update #1
The bank does not own the car. They just have a lein against it.
Also the forced insurance normally only covers the BALANCE of the loan, not the value of the car. They only want to get back their loss. So, if you should have an at-fault accident, you would get no money for your loss from the forced insurance. It would only be enough to pay off the loan.
Get your own insurance as soon as possible. Take proof to your bank, or have the insurance company provide to to the bank and it should be removed immediatly.
2006-08-08 11:46:15 · answer #1 · answered by toejam 2 · 0⤊ 0⤋
Get your own insurance and get rid of theirs!
Your lienholder just put single-interest insurance on your car. That means that if you have an accident, the bank gets their money, but you don't get a dime, and you have no liabililty insurance in case you damage someone elses car and you're at fault!
You'll have to get the insurance, then pester your bank until they take their way-expensive insurance off your loan.
Insurance companies all play leap-frog with their prices because they all have good years and bad years. So don't shop price when you're buying insurance. Shop for quality. Go with a carrier that gives you the coverage you need, and an agent that will go to bat for you when the claims guys get testy.
Then stay with that insurer and develop a good loss history over alot of years. If you have a bad year they won't dump you as quickly if they know you're loyal.
2006-08-08 18:13:33 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You owe the bank money. You agreed to keep insurance on the vehicle with them named on the policy. You failed to do that. They added insurance. It will only cover the bank's interest. Get your own insurance and they will drop theirs perhaps, and give you at least a partial refund.
Consider yourself lucky they didn't decide you were in breach of contract and demand the loan be paid in full or the vehicle returned to them.
2006-08-08 20:32:04 · answer #3 · answered by oklatom 7 · 0⤊ 0⤋
The car is their property. They want it insured against any liability they might have if you get into an accident.
2006-08-08 18:13:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
It only pays for their car. It does not pay for your injuries or the damages you do to someone else.
Basically, with that insurance - you are not legal to drive on the road.
2006-08-08 21:55:15 · answer #5 · answered by PeppermintandPopcorn 3 · 0⤊ 0⤋