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Absolutely. When you purchase and finance a vehicle you sign a legally binding contract. Perhaps you should read what you sign. The contract states that you agree to carry insurance that includes comprehensive and collision with a maximum deductible of usually $500. If you let your insurance cancel then you have broken the contract and therefore the finance company can reposses the vehicle.
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∙ 9y 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 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
Can a car be repossessed for not having tags?
No, only when you are required to have full coverage insurance and you dont, and the obvious that you do not make a payment.
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
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.
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.
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.
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.
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.
Can a car be repossessed because of no collision insurance when standard insurance was active on the car?
If your contract requires full coverage and you do not have full coverage, you are in violation of the contract.
