Need a banker or someone that works the corporate side of the bank to answer this question.?

Question

The bank added a couple thousand dollars to my car loans because I don't have insurance. The bank has told me before that if I provide proof of insurance, they will deduct the money they added on. My problem is I can't afford both the payments AND the insurance. I'm trying to sell my car, but with all the money the bank added on, no bank will approve a loan for that high amount. My question is if I have someone ready to buy my car, if it's LEGAL for them to get insurance in THEIR name for MY car? The way I'm thinking, not sure if it'll work, is they get the insurance, the bank takes off the money they added, then the bank approving the loan for the amount of the car. If anyone is confused, please feel free to IM me.

Answer 1

I had the same problem a few years ago. I let my insurance go after a car accident (my fault). The lender added their own insurance to protect themselves "only." When I paid off the loan I still had a balance of $2,000. Unless I paid that amount I couldn't get the title. They threatened to reposess. I eventually paid the the 2k and got the title. It's a tough situation, but they legally have the right to do that.

Answer 2

You need to have insurance. If the person that wants to buy the car is willing to pay the insurance, they will take the money off the price of the car? as the loan been approved yet? If not, it may not be still and the bank has a time limit for taking the money off, I think. Can't you tell the bank you are selling the car and then it won't be your problem anymore...so they can get out from under the loan also? What about borrowing the money from mom, dad or a friend? It seems odd that this is stopping the sale of the car through the bank. They should want to sell it too. No one else can get ins. on your car, they's have to pay you , then get insurance in their name because it would be their car. Have them get the loan and pay you for the car. You go pay the car off. Sign it over to them and they get insurance. What is the problem? Ask the bank?

Answer 3

First, don't drive the car, you likely do NOT have any liability coverage, which is mandatory unless you live in & drive exclusively in NH. If you get caught driving without insurance you will end up even worse off & will end up going to court, getting your license suspended and will have to pay EVEN MORE for your insurance for years afterwards. I'm sure the bank only purchased comprehensive and collision coverage for the vehicle. They don't care if you are liable to someone else for damages. Buy a policy that includes liability, comprehensive and collision in your name and present it to the bank so that you no longer have to pay the additional thousands of dollars on your loan - they will delete the coverage from the day you buy your own policy, not before so you will owe for prior coverage. You bank must be named on the policy as a loss payee for them to do this. No one else can insure the vehicle for you because no one can insure something they don't own, they can try (by telling the insurance company they own the car) but it is a waste of money because there will be NO coverage if there is a loss. If you sell the vehicle, no one will pay more than the market value of the car so if you owe more than that, you are the one out of luck, you will have to pay the rest of the loan on your own. A bank will only loan someone money based on the market value of the vehicle, they are not going to loan more than that. I guess this will be a lesson learned for you. Always get quotes for insurance BEFORE you buy a car so you can determine if you can afford your loan payments and the insurance. If you can't afford both, get an older car (even though it may not be a "cool" car it is transportation) that you can pay cash for & get a liability only policy (comprehensive and collision are normally the most expensive part of the insurance). You will be much better off & you also don't have to worry about ruining your credit by defaulting on a loan.

Answer 4

Well, it won't satisfy the bank, because they have no OWNERSHIP INTEREST in the car, so if it gets totalled, the insruance company doesn't have to pay.

The bank added their forced placement coverage - they will NOT take off the retroactive coverage, they'll just stop adding it from the day you have coverage in effect.

I see this all the time - usually the car ends up being reposessed. If you can't borrow the difference between what you can sell the car for, and the balance of the loan, you might as well do a voluntary reposession NOW, because they will come after you until the cows come home for the extra premium - which will keep adding up every month, until they repo it on THEIR clock.

Answer 5

The car belongs to the bank until you pay off the loan - therefore they are only protecting their own interests. Yes, it is legal. If you sell the car the new owner will only have to pay for the car. S/he does not need to pay for the insurance. Ask the bank to provide you with a pay-off quote and you'll see that the extra $2,000.00 is not included.

Answer 6

Banking is a international marketplace. super banks having branches and subsidiaries foreign places have for many an prolonged time been sending human beings foreign places. for the duration of that element they have needless to say recruited workers from different countries. As those anybody is promoted, they each and every so often get to artwork on the top place of work in the U.S. understanding of international markets according to adventure could be one reason for hiring such workers. according to threat their income could be under that of an American who might incredibly be doing that activity, according to threat no longer. the countless banks right here in the U.S. are foreign places banks with headquarters foreign places. and a few of those foreign places banks have been finding out to purchase up U.S. banks. they are sending human beings from their living house place of work out to their branches and subsidiaries. we've to anticipate that this works in the two guidelines -- employment for us out of the country and employment for others right here.