Long story… don’t feel like explaining.. but has this ever happened to anyone? Will they take the car away?
What Happens When Full Coverage Auto Insurance Expires On A Financed Car?
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Long story… don’t feel like explaining.. but has this ever happened to anyone? Will they take the car away?
Read your loan contract. You probably signed that you will maintain insurance coverage in which case you are in default of your loan terms. You might have given them the right to repossess if the insurance lapsed but usually they will simply buy coverage for you and add the cost to your debt. They usually charge much more for their coverage than you could have got on your own.
You are required to have full coverage on the car till it is paid off. Your insurance company will notify your lien that it has expired, since they are also a party to your auto insurance contract. So you may end up with the lien holders new insurance company and see that the payments have gone up to pay for the insurance that you will let lapse. The insurance that the lien may get maybe much higher than you are paying now.
I suggest you try and get this paid.
good luck
you pay to have it again or dmv cancels license for no insurance loan company calls and bugs you to get it back under coverage and long as your paying a payment they cant come get it but dmv can get your lisense
The financial institution its financed through will put their own “full coverage” policy on it and you get the bill!
Basically, when your full coverage auto insurance expires, your car is not protected when you involved in any accident (minor or major accidents) or your car stolen. In most cases, when the accident take place but obviously it is not your fault… you will need to pay all the sum because those car which are not protected by the auto insurance… by law it shouldn’t be on the road.