Does an auto insurance policy have to be in the same name as the car loan?
Lien Holders Insurance Indemnity Clause Yes, Your finance contract (Loan) almost always requires that theborrower provide a Total Coverage Auto Insurance Policy on thevehicle being financed to protect the lien holders interest in theproperty until the loan has been sated. It’s a matter of yourfinance contract. Failure of the borrower to provide the coveragerequired under the terms of the finance agreement puts the borrowerin “Default” on the finance note subjecting the vehicle torepossession and other remedies at the lenders disposition. Include All Drivers For Total Coverage, The Insurance policy should be decently in thename of the vehicle holder with any extra drivers listed asadditional insureds on the policy. When the vehicle is still undera finance note. The finance company will generally require that thebuyer maintain total coverage auto insurance until the note is paid.As this is part of the finance agreement signed by the buyer,failure to do so can subject the vehicle to repossession by thefinance company. Operators Liability For liability only, any driver may obtain a liability policy foroperation of the vehicle whether they are the proprietor or not, Sincethe Driver as well as the vehicle possessor can both be held equallyliable for any loss regardless of who is driving, most insurerswill require you address the insured status of the proprietor as well. Owners Liability The possessor “Name on Title” is just as liable for an accident in thevehicle as the driver is, even however the possessor may not have beendriving when the accident occurred. If someone was kind enough tosign for you to buy a car, the least you can do is make sure youdon’t expose them to a lawsuit over a future accident you may havein the car. This is why many states have begun requiring the ownerto have sufficient coverage regardless of whether the owneractially drives the car.
Is it possible to have your name on your parents insurance policy if the car loan and the registration are in your name?
This is not a good idea. You need your own insurance policy. There are coverages you do not have by being on your parents policy. You want to be a “named insured”. This means that you control the policy and not your parents. If you want to loan your car to anyone you can, if you are on your parents policy you cannot do this. Also if you need to rent a car, you are not covered under your parents policy to do this. You would be under your own policy. Contact your insurance agent for a better explanation..
If you are making loan payments on a car but never drive it do you still need insurance?
If your lender requires you to have insurance during the loan period, then yes. Also. If you are driving , then yes. If the vehicle is not on the road being driven, then no. But, know that if you just drive the vehicle to your next door neighbor’s house and you have an accident (collision), then you better have insurance or you could wind up having to pay a large fine and/or have your lincese suspended and/or have your prospects for a future car insurance company require you to pay alot more for car insurance.
Can your daughter provide insurance for a car if the loan and the registration are in your name?
There are so many potential screenplays in this situation. Are you wishing to insure it via the daughter because she has a better record, thus better rates? That would, of course, be considered fraud, and is not advised. Additionally, they are going to rate the policy based on all drivers in the house, so the rates may not improve anyway. Does the daughter live in the same residence? Most other family members would also be covered, IN MOST CASES WITH MOST COMPANIES, but most also require a DMV check on each driver in the house. The company can also list a specific ‘named driver exclusion’. I.E. Seventeen year old Johnny has already received three violations; carrier will proceed coverage but require a named exclusion for Johnny. They will cover NO accidents or incidents in which Johnny is the driver. If she is NOT in the house, is not a regular driver of the insured vehicle, and has no legal relationship to the vehicle financially, but is better able to meet the financial obligation of the premiums, then you should simply have her give the monies to you each month.
What do you do if the insurance for a totaled car does not pay off the car loan?
I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and showcased them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to petite claims court and filed suit on the driver of the other car. The person’s insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can substitute the car for what they want to give you. ResponseUltimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe–only what the car is worth. ResponseThe insurance company will only give you the value of the vehicle, as per the “Kelly Blue Book”. They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous harm. If the accident was another driver’s fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for “Kelly Blue Book”, and get the estimate of the car’s value. If it is more, then dispute it with the insurance company. Print the page out. ResponseWhen you bought the car fresh or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not suggest it to you and some just don’t know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a woman hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even tho’ she did not have the car. The courts won’t do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
Who is responsible for the loan if a person has died and when the car was purchased finance insurance was not suggested?
As far as I know, in Texas, the son is not responsible for the debts of the father. In other words, no one HAS to pay it off. But, the seller has the right to repossess the car. But, they can’t make relatives or anyone pay for it. !
What happens to a loan on a car when the loan holder dies and there is no cosigner or insurance on the loan?
The loan must be paid out of the estate (sell of home, life insurance policy, etc…) Otherwise, the estate will be held up in litigation and will not be closed or the beneficiaries will be coerced to pay the loan.
Can your name be on the title and registration and insurance while not on the car loan?
No. Find out what car dealers don’t want you to know at www.dealertricks.comThe reaction to this question is YES. Unluckily dealerships can make mistakes and different names can be sent to the state department of motor vehicles and to the finance company. If this happens, it is a very difficult, if not unlikely condition to correct.
If you loan your car to a step-child who does not live with you will the insurance company cover in case of an accident?
Anyone you give permission to is covered on your policy. Family members are certainly covered, even step children no living with you. Do not use this availability as primary insurance for them tho’. They should be listed on the residential parent’s policy.
Is it possible to get a car loan to get a car but put the car as immobile so you won’t have to pay total insurance on the car?
NO, all insurance companies require you to carry insurance on a vehicle with a lien. What if it catches on fire or is stolen.
If you loan your car to a friend and they wreck your car is your insurance responsible?
yes. plain and ordinary. you lent the car and then they are a permisable driver. As long as they are not n excluded driver or a resident in your house..
It depends, if your policy is a named driver & the driver is not named, your policy will not react. If your policy is a standard auto policy then yes, your policy will react.
If your car is stolen can the loan still proceed and a fresh car be bought with the insurance money?
The loan on the original car was secured by the title of the vehicle. When it was stolen, your insurance company should have paid the value of the vehicle very first to the lender then any remaining money should go to the holder. If the holder is “upside-down” in the vehicle he/she will be required to pay off the remainder of the note at that time or make arrangements to pay it off. No, the loan cannot be applied to another vehicle. A fresh loan must be negotiated.
What happens if you pay your car loan so it doesnt get repossessed but you dont have insurance?
Your car finance company will add their own insurance that covers their vehicle, but not your liability. ANd it will significantly increase your payments. It would be so much cheaper and better protection for you to find your own insurance..
Park it until you get insurance.
Can you get insurance on a car that has been loaned to you by a friend who is out of the country for 6-8 months?
I would call my agent on that one. Very first, you realize in the event that you are pulled over you are producing a registration under someone elses name. Secondly, if you are not the proprietor, you have no financial interest in the car and could not possibly collect from the insurance carrier for damages to that car. You may be able to get some sort of “non-owned auto liability” policy. Call your agent!
If a friend wants to buy your car but doesn’t have the credit to get a loan and you keep the car loan and insurance and they pay you the car payment and insurance who is liable if there is an accident?
The person with the insurance. Never permit someone who isn’t on the policy to drive the car..
The person who has their name on the title is primarily responsible, so since there is a loan on the car in your name, the title must still be in your name. If your friend crashes the car YOU will be responsible for HIS injuries as well as any harm and injuries to others. If you do not have his name on the policy as the primary driver and the insurance company finds out he was buying the car from you and driving it on a regular basis, they may reject the claim AND prosecute you for insurance fraud. .
What should you do if you co-signed a car loan for someone and they are driving with a suspended license and no insurance?
One should NEVER co-sign for anyone because you become responsible for paying that debt back. You only gave them the money so what they do on their spare time has nothing to do with you co-signing a loan. However, if you were clever I’d report this person. You won’t be popular for it, but this person is irresponsible and you could be saving someone’s life (including this persons.).
If your mom co-signed a car loan for you and you signed the loan too can you get car insurance for the car in your name only?
Yes, you can purchase your own car insurance. However, you must add your mother (the co-signor) as an extra insurance but non-operator. There is no extra premium for her. She is added on so she is protected an extra registered possessor.
How do you get another car loan or will you have to wait until the loan is closed if you have a loan on a car that was totaled and insurance and GAP insurance will pay the total loan balance?
Yes surely you can get another. I was having the same query so I searched for it on net and came across the site AutoFinance-EZ. Interest rates are determined by the actual lenders and are influenced by several factors, including the severity of credit problems, the amount of down payment, and the degree of credit risk. Your auto loan pro will explain these factors, and tell you exactly what your interest rate will be. .
If you are not sated by the deal you are getting for a 2nd loan on your car, attempt looking for a payday loan.
What should you do if a co-signer on a car loan totaled car with no insurance now you are paying the loan?
You should sue the co-signer. Even however you may be the primary person obligated to pay the loan, he is responsible to you for totalling your car. You still have to pay the loan company because you took out the loan; but the co-signer caused the loss. You won’t be able to force the loan company to take payments from him tho’. Getting him to reimburse you will be your problem.
If you are a co-signer on a car loan for your son do you have to be listed on the insurance policy?
Most likely not. The purpose of a co-signer is when someone has “insufficient credit” to finance a vehicle someone else has to be on the application so in the case the main buyer messes up, the person cosigning will also be held responsible. In terms of insurance, as long as he has his own license and his name is on the registration, he can have his own insurance policy.
Can you insure a car that the loan is in someone else’s name?
Insuring a Vehicle in someone else’s name. Yes you can. So long as you also list the proprietor as an insured. See the related questions below. Other AnswersNo, the insurance needs to be in the same name as the person on the loan.
Can your daughter be on your car insurance if you are not cosigner on her car loan?
Yes: Your spouse/children can be included on your insurance policy regardless of who was/if there was a cosigner on the car.
Can the name on the insurance policy differ from the name on the car loan?
Anyone driving and all owners of the vehicle should be a namedscheduled driver on the Auto Insurance Policy to have propercoverage under your states financial responsibility laws. The terms of your Finance Note if the vehicle is financed will alsorequire that the purchaser be listed as an insured in order to bein compliance with the Finance Note.
When a applying for a auto loan and there are Two people on the loan does the primary name on the loan have to have insurance if they do not drive the car and have no license?
I’ve been in this exact situation before, there may be a problem and the car people may have to figure the paperwork because you can’t sell a car to someone without a license, but the people at the dealership did it for me and my mom years back so I’m sure they can find out how to do it if they wanna sell that car, but she is going to have to have her name on that insurance policy no matter what, which could bring the cost of insurance up to the point you may not even want the car. That being said it shouldn’t be unlikely to get a nice cheap insurance policy, all in all, you should be able to get the car, we did it a few years back so you should make out ok!
If you are in a car accident and the car is totaled does your car loan get paid off through insurance?
Not unless you have the fresh option in insurance of the fresh car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.
Do i have to carry insurance on a car that is in my moms name if my name is only on the loan?
Response from a General Insurance Agent .
Yes, all drivers are required to carry financial responsibility. If you are driving the vehicle you must be insured to do so, It’s the law..
Failure to notify the Insurer and have yourself added as a scheduled driver is a well known form of “Insurance Fraud” by misrepresentation of a known risk. All Insurance policies require that any switch in risk factors (including extra driver) must be reported to the Insurance Company.
Can you legally loan your car to a friend if it’s insured to you?
You can legally loan your car to a friend, if you own it, but be ready to pay for any damages done to or by your friend, because your insurance won’t and they might cancel your policy. You must inform your insurance carrier if other persons will be driving your car.
In the state of Illinois does your insurance cover the the loan on your car if you receive a DUI?
No. The loan on your car has nothing to do with a DUI. If you do get a DUI, most very likely your insurance renewal premium will go up a lot. But, your insurance has no reason to cover your auto loan. It is up to you to make your loan payments with or without a DUI on your record.
Can you have a car loan in your name and someone else carry the insurance on the car?
Your name must be on the insurance policy, otherwise you are not a covered driver under that insurance policy. Failure to disclose a known driver can void any coverages afforded by the policy and is a well known form of insurance fraud.
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don’t have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
Can you get auto insurance under your dad if hes not on the car loan?
Yes. The leinholder (the person who has to pay the loan) and the lender (the person who receives the loan payments) is not related to the person insured to drive the vehicle.
Is liability insurance enough for cars that are purchased by getting a loan?
That all depends on which bank gives you the loan. Most banks require that you carry comprehensive and collision coverage and don’t even care if you have liability. Others want both. Very infrequently you will get a bank that wont’ mind if you don’t have comprehensive and collision.
If someone dies and has a car on finance does it belong to the estate of the deceased if there was no insurance on the loan?
If the loan is not paid off at the time of the death, the vehicle belongs to the lienholder until the vehicle is paid off.
Car was wrecked no insurance still owe on loan does bank make you pay for fixing car on top of loan?
I am not a lawyer but any car loan I have ever signed, the following are true. The car is the collateral for the loan. The loan company a.ka.,the bank, is the holder of the car and holder of the title not you. I also make the promise that I will maintain what we call collision (accident loss) and comprehensive (theft, vandalism, weather etc. loss) which protects the bank from loss by insuring the vehicle is paid for in the event of a loss. The State mandates I carry my liability coverage. So I gather in some parts of the country this would be called total coverage. The other significant issue is because the car is in fact wielded by the loan company they are listed on the insurance document as the 1rst loss payee. So if in fact you are insured the loan company will be paid very first. You promised to pay the loan company x dollars when you signed the note. Nothing will relieve from paying that amound plus accrued interest. If the settlement is not enough to cover the outstanding loan balance then you owe the remainder. If you cancelled your insurance or let it lapse for non-payment then you are already in default on the loan just has if you had missed payments. Per the terms you signed the loan company can request instant payment for the entire outstanding balance on the loan and embark whatever processes it needs to collect that money including its legal fees to collect the money. All of this will affect your future insurance rates and your credit score. In most but not all states things like credit rating, insurance spectacle (cancellations, non payment, length of continuous insurance etc) will affect any insurance premium or loan interest in the future. You need to be upfront with everyone, take your financial hits and stir on. It will only get worse, You see a lot of this issue. The lesson here is don’t by more care than you can afford and insurance payments are every bit as significant as your car payment. They are not an option. Never buy a car that puts you under water. That is you owe more than the car is worth. Generally this means putting down some kind of reasonable downpayment (my individual guideline is at least 30% of the purchase price of then vehicle) , never finance a fresh car for more than Four years or used car for more than Trio years unless it’s a vehicle that holds value enormously well like a fresh Mercedes. If you the find the payments plus the insurance are exceeding your budget, time to sell it and buy something with in your budget before trouble hits. Just because someone offers you a car loan with a 1000 down and finance the rest, doesn’t mean you should take it. In fact you should run. This fellow cares more about his commission than your financial well being. Unlike buying a house which is usually an appreciating asset, a car is a depreciating asset or expense.
Is it legal for the insurance company not to pay the loan company on a totaled car?
Yes. The insurance policy is a contract. All it requires the insurance company to do is to pay the fair market value of the vehicle. You would need to get what is called gap insurance to pay the difference inbetween the market value and the loan value.
Your brother is loaning you his car if you insure the car can he be held liable for an accident you get into?
ReactionVery first, your brother’s car should be insured anyway. However, if you have your own insurance policy and this fact is stated in the policy, you are liable. Furthermore, if you by chance, reside with your brother, you should be included in his policy. If your brother’s coverage is liability only, but your’s is higher, the higher coverage may apply, however, Two policies on one vehicle may be applied in case there are excessive damages and/or individual injuries. In any case, all damages need to be sated based on the policy (s) boundaries, and that’s if the other driver’s insurance co. requests policy thresholds verification.
Gap insurance is from the auto loan or your insurance on the car?
GAP (assured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease. It’s purpose is ordinary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.
What do lenders do on a car loan with no car insurance?
The very first thing that they will do is to put compelled place coverage on the vehicle. This is a very expensive type of insurance that only protects the banks interest and only pays the bank. The premiums are added to your account and you are responsible for paying for the insurance. This insurance only provides physical harm coverage and will not pay for harm to your property or anyone Else’s. It does not provide liability and does not meet the state requirement to permit it to be driven on the street. The 2nd thing they will do is to repossess the vehicle because you have violated the contract that you signed with the lender to keep the required coverage on the vehicle. Oh yes, and the cost of impounding and storing the vehicle after it has been repossessed will also be charged to your account.
If you loan your car which has liability insurance to a friend and he has an accident can other drivers sue you?
This depends on the state. In California if you loan a friend your vehicle and he kills someone with it, then you are also charged with manslaughter!
Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?
If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
Do you need car insurance on a car that’s not being driven but has a loan?
Ordinarily, the lender will require, as part of the terms of the loan, that the vehicle be kept insured for physical harm, so as to protect the value of the collateral. Harm can be done even if the car is not driven, such as by fire, storm harm, or similar occurrences which could be covered by comprehensive coverage. The loan documents will generally provide that in the event insurance is not maintained, the lender can secure physical harm coverage on the vehicle to protect its own interest. The cost of that “single interest” coverage is usually disproportionately high and will be added to the loan balance.
What is the best car insurance India company Is there a loan company that do not require insurance on the car?
The best motor plan coverage India for you will depend entirelyupon your specific requirements related to insurance cover, premiumand a lot more. You need to get into a serious comparison for bestauto comparison for insurance online. No. There is no loan company in India that will not ask you forinsurance on the car.
What are the best loans to get for car insurance?
This depends on what is best for your financial situation. If you have more money at the time of purchase, you can make a thicker down payment and get a loan with lower payments. However, if needed, you can get a larger loan and pay more per payment.
Do car insurance companies check for unpaid car loans?
Absolutely. They also check to see that the vehicle is titled in the name of the person who purchased the insurance
Can you eliminate auto insurance from a car if you have an outstanding loan on it?
Usually no because the leinholders when to make sure their car will get paid for if their is an accident.
Can a co signer take over ownership of car loan and get insurance?
A co signer is for the loan, they do not have any ownership in the car unless they are on the front of the title. If they just co signed for the loan, that lmeans they will pay for it if the holder does not. Even if they paid the entire loan, they still would not own the car. To transfer the car, they would have to either pay the loan off or get a loan in their name and you sell the car to them.
Can your insurance company takie loan car without paying you out all the money?
What an insurance company pays for a total loss vehicle has nothing to do with the amount owed on the car. Auto insurance is based on the actual cash value of the vehicle while the amount owed on the loan has nothing to do with the ACV of the vehicle. If a vehicle is totalled and you owe $5000 and the ACV is $8000 the company will issue a check for $5000 to the finance company and a check to the policyholder for $3000. If the numbers are in switch sides the insurance company pays the ACV of $5000 and you still owe $3000 to the finance company. It happens when you pay to much for the car, build up interest and fees, add other amount to the loan like if you were upside down in the last loan and they add the balance to this one. Anyone purchasing or leasing a fresh vehicle should ask their agent about GAP insurance. Because a fresh vehicle depreciates so prompt at very first you need this coverage. The dealer finance department will sell it to you for a chunk of dollars and your insurance company will sell it to you for a duo of dollars a month. The difference is amazing. GAP pays the difference in what the ACV is and what is owed on the vehicle.
What if you have a car loan and have an accident and bank or insurance didn’t make sure you had utter coverage?
When a person finances a car, proof of insurance is required, a buyer has about24 hours to let his insurance company know about his car. In the event thatcar buyer stops making insurance payments the finance company is almostinstantaneously notified and your car finance agreement charges the buyera higher monthly payment for “single interest” insurance. That is where thefinance company is reimbursed if vehicle is bruised, to protect their interestsbut not the buyer’s. They can then at least get it immobilized, and sell to someonehopefully more responsible. They have this stuff all figured out.
Why would a co signer of a car loan take life insurance?
If the person the co signer was signing for died they would not be liable for the remaining amount due. Also the other way around if the cosigner dies then the car would be paid for after death, but there would very likely be two different plans for that.
Can you put your 20 year old daughter on your car insurance if the loan is under her name?
As long as she still lives in your household then yes you can add her to your policy. You need to make sure that she is listed as a driver on your policy and you may put her vehicle on there as well.