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A bank will want full coverage.
It is a state law to carry comprehensive insurance ( collision ) on any vehicle with a lien.
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∙ 13y ago
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When can you drop collision car insurance for your used car?
Anytime after you have paid off the loan on it.
After how many years can you remove collision coverage from your car?
You can remove collision and comprehensive coverage whenever you own the car free-and-clear. As long as there is a loan, the lender will insist that you keep full coverage.
How old does a car have to be before collision-comprehensive insurance is no longer necessary?
I believe it can be brand new, but you can't have a loan on it.
Does gap insurance cover a death?
No. If a car is determined to be a total loss as a result of a collision, GAP insurance pays the difference between what the collision coverage pays as the actual cash value of the car and the outstanding loan balance.
In South Carolina can your car be repossessed if you don't carry collision insurance but do carry liability and the payments are up to date?
In any state when a bank or another company holds a loan on a vehicle they require COLLISION, with out it if you are at fault in an accident the car loan WONT be paid off without it, liability ONLY covers the OTHER vehicle. Most all loan contracts state that the vehicle may be repoed and held until the loanee can show proof of collision ins, and you only have so many days to do this bebore they can sell it to clear the loan.
What is a secondary collision?
When a vehicle is in a car accident there can be a secondary collision. For example, if car ÒbÓ was rear ended that is the first collision but when that car hit the car in front of them that is the secondary collision.
Can your car be repossessed if you do not maintain insurance coverage on the vehicle?
An automotive loan usually contains a clause that says the loan recipient must maintain insurance on the car for the life of the loan. Usually, this includes not only the legal minimal liability insurance, but also theft, collision and fire insurance. If you are in breach of the loan agreement, your car may be subject to repossession, depending upon the terms of your loan agreement.
Does the car insurance pay the debt when the owner dies?
Normal car insurance Liability, Collision, & Comprehensive will not pay off the loan. You would need to get the proper insurance for this purpose. Either life insurance or insurance for the purpose of loan payment.
What is a secondary?
When a vehicle is in a car accident there can be a secondary collision. For example, if car ÒbÓ was rear ended that is the first collision but when that car hit the car in front of them that is the secondary collision.
The Emerson first national bank is lending you money to buy a new car the loan agreement will probably state that you must carry what insurance?
A company making a loan to purchase a car needs to ensure that its interest in the car will be protected because the car is collateral for the loan. Therefore, it needs to ensure that if the car is damaged, a source of money exists to restore the car to its condition as of the time of the loan. Collision and comprehensive insurance do that by protecting against the diminuition in value of the car because of the damage. For these reasons, the lender will require proof that these coverages are maintained. If they are not, the lender will buy these coverages to protect its own interest. Typically, the cost of such "single interest" coverage is charged back to the loan account. It is usually more costly than if the customer maintained comprehensive and collision coverage as they were supposed to.
What is collision in car insurance?
Collision is a slang term for coverage on your car if you cause the accident.
Can a financed car be used as collateral for a loan?
Since the car is financed, it already is collateral for a loan. Your car loan uses the car as collateral for that loan. I think the only way for you to use the car as collateral for a different loan is to have the NEW lender pay off your car loan, tack the ammount of the car loan on to the new loan you are getting, therefore they would then be the leinholder on the car.
