I got a letter stating, Notice of Insurance Purchase and Premium Finance Disclosure.
2007-04-25 08:54:07 · 5 answers · asked by Laura T 1 in Cars & Transportation ➔ Insurance & Registration
I received a letter from my finance company stating, Notice of Insurance Purchase and Premium Finance Disclosure.
2007-04-25 09:08:33 · update #1
I have a 2001 Chevy but I had a car accident and my insurance wouldn't pay for the damage, so I let the finance company know because they were requesting proof of insurance since my insurance cancelled mine.
2007-04-25 09:11:09 · update #2
Do not ignore the letter it is not junk mail.........
If you did not get a new policy and you still owe money on the car the letter is probably telling you that the finance company bought a policy to cover any future car damages.
If this is the case it is NOT a good thing for you.
1. It is very expensive insurance.
2. It does NOT cover you in way, shape or form
3. The cost is added to your regular car payments. I have heard of cases where it has doubled the car payment.
Get your own insurance including collision coverage. Then have the insurance company send a copy of the policy to the finance co. That should lower your payment again.
2007-04-25 10:51:47 · answer #1 · answered by fighting saints 6 · 0⤊ 0⤋
It means, you finance company has purchased insurance for your vehicle. They are doing this because, insurance is required per your loan agreement. Prior to this notice, they probably told you that you must provide proof of insurance within a certain amount of time. Since they put insurance on, it only covers their interests, it is not coverage for your benefit, at all. In fact, the premium is added to your loan amount, either at the end, or on your payment plan, depending on how your loan is written. It can add an extra 2,000 dollars to your loan. You need to contact them, and make arrangements to get insurance on the vehicle. Your liability is at stake also, if pulled over. It gets expensive.
2007-04-27 18:43:15 · answer #2 · answered by fisherwoman 6 · 0⤊ 0⤋
sounds like they are acknowledging reciept of your finacial proof of insurance. if unsure call the finance company and ask them directly to prevent any confusion. as most company have clauses in the finance agreement that allow the to reposses a car if the borrower doesnot maintain insurance on it
2007-04-25 09:49:14 · answer #3 · answered by hunting4junk 4 · 0⤊ 0⤋
Well, did you buy insurance recently? Could be junk mail. What does the body of the notice say? Is there a number?
Be careful giving out you social security number.
2007-04-25 08:59:31 · answer #4 · answered by Wil T 3 · 0⤊ 0⤋
more than likely its junk mail but read through it and dont send anything in or sign anything until you are sure..
2007-04-25 09:01:38 · answer #5 · answered by sunshine 2 · 0⤊ 1⤋