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If the car is leased or has a lien on it (meaning you have a loan out on it) it CAN be repossessed for letting the insurance lapse on it.
Cars that have liens on them are required to carry full coverage insurance on them by the bank. This is because until you pay off the loan the bank technically owns your car, and they want to protect their investment.
If you are unsure if you have a lien on the car, take a look at the title. If there is a lien, it will show on there. If you are thinking, "How will they know?" here is the answer to that. When your insurance coverage lapses (runs out/expires) and is not renewed, the ins. company notifies the DMV of your state. Under most state laws, you are the given an average of 14 days to resume insurance coverage or are required to surrender you license plate(s). If the 14 day average passes and you have not done either, the bank that has the lien on your car is notified (because the sate DMV has those records). The bak will then attempt to call you and rectify the situation. If they are unsuccessful, they have the car repossessed.
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∙ 16y ago
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When a car is repossessed what do you do with the insurance?
When a car has been repossessed the person paying the insurance should cancel it.
What if your car was repossessed due to lack of insurance yet was insured at time of repossession?
Vehicles cannot legally be "repossessed" due to a lack of insurance. Re-possession can occur only when there is a default in the payment contract and the original owner (the lender) recovers their property from the defaulter.
Will your car insurance company let you have a rental car if your car was repossessed?
Very unlikely. Car insurance is primarily covering damage or loss of vehicle due to theft. Similar to if your car is being repaired a rental car will not be provided.
What do you do about your car insurance once your car is repossessed?
Cancel your policy.
Should you cancel the car insurance on a repossessed car in NJ?
yes
Should you cancel the car insurance on a repossessed car in Florida?
Yes of course you should!
Can a car be repossessed if I don't have insurance?
yes by doing the confy stuff
When can your car be repossessed in california?
In California your car can be taken 1 second after midnight the day after your payment is due. If you do not comply with one of the requirements of the loan, things like insurance and the like, the car can be taken with out notice.
If your car has been repossessed do you have to keep car insurance on it?
no, but it is recommended. the repo co has insurance and is bonded for this type of situation. you will have to provide proof of repo to your insurance co.
Does insurance help with rental when car repossessed?
I've never heard of an insurance policy that covers repossession. Remember, the car doesn't actually belong to you -- it was repossessed because you failed to honor the contract of repayment of the loan to buy it.
My girlfriend canceled my insurance and called the car lot My car was repossessed to get the car back they want to be paid off in full what are my legal rights do I have any options?
If you owed money on the car (which is probably why it was repossessed), you need to pay what they demand. Check the paper you signed when buying the car if you think they are 'demanding' something different than you signed. Your girlfriend was smart to cancel the insurance, since a repossessed car does not need insurance. You cannot sue your girlfriend for calling the car lot, or for cancelling the insurance, because you cannot show DAMAGES to yourself.
If you repossess your car do you have to continue insurance coverage on that vehicle?
I take it you mean, if your car IS repossessed. In that case, IF you dont plan to redeem it, NO. NO car, NO insurance. Once the lender repos the car, they are responsible for the insurance coverage.
