Yes, read your contract, it will clearly state that insurance is required and that the loan can be considered in default if no insurance is carried. Most of the time, the lender will put their insurance on the car(which doesn’t cover you, or protect you in any way)and it extends your loan out longer, maybe even an additonal year.
I don’t think they can unless it’s a lease. I know here in CT the police department definitely can. I forgot to put my new insurance card in the car and my old one was expired. Took only about 5 minutes for the tow truck to get there!
i don’t know what the laws are in your state but in some states yes they can ,they have an interest in the vehicle as long as you owe money on it,so yes in some cases i have seen this happen,you,ll have to check with the laws that govern this in your state,they may be different,good luck.
I will assume that you have financed the car with the dealership. When you signed the loan agreement, you stated that you would keep comprehensive insurance on the truck. In fact, dealers will not let you take the truck off the lot, unless you provide proof of insurance.
That truck is their collateral that you will pay your loan. If you total the truck without insurance, the dealer is out a fair amount of money.
If you get insurance, then the dealer would have to return the truck. They may require you to pay off the loan, since you defaulted on your agreement and contract.
good luck, but do get the insurance. Cover yourself in case of an accident.
yes! most of the dealerships go the finance through banks. And at all times you must keep liability some of them even want collision insurance keep on it. Just in case a accident happen they want be loosing money.
May 8, 2010 @ 4:53 am
Yes, read your contract, it will clearly state that insurance is required and that the loan can be considered in default if no insurance is carried. Most of the time, the lender will put their insurance on the car(which doesn’t cover you, or protect you in any way)and it extends your loan out longer, maybe even an additonal year.
May 8, 2010 @ 5:24 am
I don’t think they can unless it’s a lease. I know here in CT the police department definitely can. I forgot to put my new insurance card in the car and my old one was expired. Took only about 5 minutes for the tow truck to get there!
May 8, 2010 @ 5:27 am
i don’t know what the laws are in your state but in some states yes they can ,they have an interest in the vehicle as long as you owe money on it,so yes in some cases i have seen this happen,you,ll have to check with the laws that govern this in your state,they may be different,good luck.
May 8, 2010 @ 6:14 am
I will assume that you have financed the car with the dealership. When you signed the loan agreement, you stated that you would keep comprehensive insurance on the truck. In fact, dealers will not let you take the truck off the lot, unless you provide proof of insurance.
That truck is their collateral that you will pay your loan. If you total the truck without insurance, the dealer is out a fair amount of money.
If you get insurance, then the dealer would have to return the truck. They may require you to pay off the loan, since you defaulted on your agreement and contract.
good luck, but do get the insurance. Cover yourself in case of an accident.
good luck.
May 8, 2010 @ 7:07 am
yes! most of the dealerships go the finance through banks. And at all times you must keep liability some of them even want collision insurance keep on it. Just in case a accident happen they want be loosing money.