I have a vehicle for which the title is held by the bank. It recently became inoperable, and we are working on getting it repaired. In the meantime, am I required to pay for insurance on the vehicle?
2007-09-30 12:20:13 · 4 answers · asked by CFrehner 3 in Cars & Transportation ➔ Insurance & Registration
Bank will require you to keep insurance just in case it catches on fire while being repaired. Your insurance company will charge you more to renew if you cancel coverage. Yes the bank and insurance companys have you keep full coverage aginst the banks loss.
2007-09-30 12:26:44 · answer #1 · answered by John Paul 7 · 0⤊ 0⤋
If you are making payments on the vehicle - the bank will require that you maintain full coverage (comprehensive and collision) and liability on the vehicle. The fact that the car does not run has nothing to do with it. The car could still be damaged (ex: storm blows tree onto car, mechanic shop where car is being repaired burns up with car inside. etc.)
2007-09-30 20:29:37 · answer #2 · answered by Boots 7 · 0⤊ 0⤋
most lenders require at least comprehensive insurance for the vehicle, even if it isn't operable and they hold the note on it. It will be easiest to just keep your regular insurance on it, like dude said, if it were to catch fire or stolen or even hit by some passer by.
2007-09-30 19:40:51 · answer #3 · answered by heavyhauldad 3 · 0⤊ 0⤋
You can place a 'hold' on your collision and liability coverage if it's OK with the bank.
2007-09-30 23:47:55 · answer #4 · answered by Anonymous · 0⤊ 0⤋