I have a 2002 Altima, the motor is blown. I CANT drive it and I dont have the funds to get it repaired. Do you think the bank will let me drop the car insurance??
2007-04-18 18:19:55 · 11 answers · asked by Liz 4 in Cars & Transportation ➔ Insurance & Registration
I know with our lender agreements, the customer must have insurance at all times when the vehicle is being financed. It's protecting the bank's asset considering they are the ones who hold the title.
Call your lien holder and find out before doing anything. A lot of times when you work with them directly, you can accomplish more than you'd expect and save yourself future hassles upfront.
2007-04-18 18:30:54 · answer #1 · answered by JimmieHendrix05 2 · 1⤊ 0⤋
Certainly you can drop the insurance. Just pay off the loan, and then drop the insurance. If you can't do that, you will have to continue to carry full coverage as required by the terms of the loan, which you agreed to and signed when you financed the vehicle. No where did it say "...unless of course you blow up the engine, and in that case you don't need to fix it or pay insurance." In fact if you read the contract you may find a clause that requires you to do the repairs to keep the vehicle running so it remains a valuable asset to the bank.
2007-04-19 06:01:06 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
Ask your lein holder (loan company) if they would allow for just storage. If not, then yes, you would either need to pay for full coverage or send it back to the bank. Since you will be deployed with the military, ask a family member that has a better driving record if they would be willing to insure it for you while you are deployed. If not, have them drop the limits of liability down to state minimum, eliminate Uninsured motorist, and raise your Collision deductible to the maximum that your loan will allow (usually $1000) Make sure to keep your comprehensive (other than collision) at a reasonable amount as this is what will cover your damage while you are parking the vehicle.
2016-05-18 21:29:51 · answer #3 · answered by ? 3 · 0⤊ 0⤋
Yes, you'll have to keep the insurance on it. What if someone stole it while it is in the shop and had it crushed for the metal? Who would pay the bank? See if you can borrow the funds to get the car running again. If you can sell it for what you owe, then you could do that. what are you doing for transportation now? Are you getting by without a car?
Well, I hope it works out for you.
2007-04-18 22:15:49 · answer #4 · answered by Fordman 7 · 0⤊ 0⤋
Most banks will allow for Storage coverage on the vehicle. (comprehensive) This is making sure that their investment in the vehicle is safe. If your insurance company won't do that, then check with the bank and see how much this coverage would cost through them
2007-04-19 06:28:40 · answer #5 · answered by buttrfly52 4 · 0⤊ 0⤋
No, they won't. You may be able to drop the liability coverage but you'll still need to maintain collision and comprehensive coverage. If the vehicle is taken off the road the insurance company MIGHT let you drop the collision coverage but they're not obligated to do so.
2007-04-19 03:51:05 · answer #6 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Hell no. If you have a loan you have to have full coverage. No lending company would be stupid enough to retract mandatory insurance b/c of a blown motor. What about your warranty, AUTO INSURANCE?? Do they cover any of your damages?
2007-04-18 18:29:54 · answer #7 · answered by nchenelle 2 · 0⤊ 0⤋
I'm pretty sure you still have to have insurance on it simply b/c you have the loan on it and do not own the title yet.
2007-04-19 02:06:16 · answer #8 · answered by madtyga2002 4 · 0⤊ 0⤋
This is a good question for the bank! I don't see why you couldn't drop the insurance...
2007-04-18 18:28:14 · answer #9 · answered by WTF 4 · 0⤊ 1⤋
That's a good question, just make sure that it's registered as a non-op with DMV then ask the bank. Let us know what happens.......
2007-04-18 18:48:57 · answer #10 · answered by adevilchild38 5 · 0⤊ 0⤋