2007-12-12 08:35:59 · 8 answers · asked by maddymel 1 in Cars & Transportation ➔ Insurance & Registration
The coverage the Bank would use is referred to as collateral protection insurance or Vendor Single Interest. About all it protects is the loan balance. So, if you wreck the bike and do minor damage, you can't get it fixed as it only pays in the event of a total loss by collision or theft.
Your payments might not go up, but, in 3/4/5 years (or whenever) you think that you have paid off the loan, because you don't have any coupons left...so, you go to the bank and ask for your title.....THEN they tell, you........."Oh, no....you still owe $3000 for this single interest insurance that we bought for you!"
So, if you can't afford the insurance - you can't afford the bike!
Get right with the bank and go out and find yourself a local agent that has someone that specializes in motorcycle insurance!
Good luck, ride RESPONSIBLY and I hope this helps!
2007-12-12 12:01:12 · answer #1 · answered by Insuranceman 6 · 0⤊ 0⤋
Your loan requires you keep insurance on the motorcycle. It probably even says your deductible can not be more than 500.
If you do not keep insurance on the motorcycle, the bank will put physical damage coverage on it and bill you for it. It will cost a whole lot more than you could get on your own.
Also - the bank will not put uninsured motorist, underinsured motorist, medical payments coverage or liability coverage on the bike. You would have no coverage for any injuries to yourself or for the damage/injuries you cause to other people.
Which means - if you hit someone - you can be held personally responsible for any damages/injuries you cause.
The bank will not insure to protect you - they will put insurance to protect their equity in the vehicle.
2007-12-12 09:33:18 · answer #2 · answered by Boots 7 · 1⤊ 0⤋
When you signed for the loan, you agreed to pay a certain interest rate, to make regular payments, and to keep full coverage insurance naming the bank as payee in the event of loss.
If you don't, they can do one of several things. They can find you in default of the terms of the loan, and insist you pay the full amount to them, and if you don't they will take your motorcycle. Or, they can add their own insurance to your loan so they will be protected, and you will have to pay the monthly rate of their insurance which will probably be higher than what you could get on your own.
Note that if they take it you will have a repossession on your credit, and if it sells for less than what you owe (likely) they will sue for the remaining balance.
2007-12-12 08:43:20 · answer #3 · answered by oklatom 7 · 1⤊ 0⤋
They sure will, and they'll charge you double what they'll be paying as a service fee. (ok, not quite double, but you get the idea).
Check your loan paperwork. When you got the loan, you must have signed paperwork agreeing you'd get insurance in x number of days, or the finance company would get it and charge their cost to you.
2007-12-12 08:38:20 · answer #4 · answered by hsueh010 7 · 1⤊ 0⤋
YES THEY WILL TO PROTECT THEIR INVESTMENT AND THEN THEY WILL REPO THE BIKE AND YOU WILL BE STUCK FOR THE INSURANCE, THE REPO AND ANY AND ALL OTHER FEES AS WELL, AND DON'T FORGET ABOUT YOUR CREDIT GOING DOWN THE DRAIN.
2007-12-12 09:28:03 · answer #5 · answered by Anonymous · 0⤊ 1⤋
No, you will be violating the law and you could go to jail
2007-12-12 08:38:45 · answer #6 · answered by Anonymous · 1⤊ 1⤋
yes and it'll cost a lot more than it would if you got it yourself
2007-12-12 08:44:51 · answer #7 · answered by rachel s 3 · 0⤊ 0⤋
They can and it's expensive, and it only protects their interest.
2007-12-13 06:39:29 · answer #8 · answered by Scott H 7 · 0⤊ 0⤋