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The insurer is required to compensate you at Fair Market Vallue. This usually will pay off any remaining financed note unless you greatly overpaid for your vehicle. There are times when you can owe more on the vehicle than an insurer is willing to pay. Bare in mind that it is not the fault of the Insurer if a consumer makes a vehicle purchase agreement in an amount greater than the actual vehicle value.
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Does an insurance company have to pay the lien holder directly after an auto accident?
An insurance company generally does not pay the lien holder directly. The vehicle owner is responsible for paying for insurance coverage and will often deal with the insurance company themselves after a collision has taken place.
Can the bank holding the lien on a car find out if you have only liability and can they repossess if they require full coverage?
Absolutely! The insurance company should be sending the lien holder a copy of your policy and if you are not providing full coverage they will either repossess the car or purchase Lender's Single Interest Insurance (very expensive policies) and add the premium to your loan.
Do insurance companies contact the lien holder if insurance is cancelled on an automobile or motorcycle?
Yes, they do let the lienholder know when it has been cancelled or if the full coverage has been cancelled.
Do you half to have full coverage with a lien holder?
yes
What type of insurance is needed when you have a lien or loan your car?
comprehensive coverage
What type of insurance is need when you have lien or loan on a car?
comprehensive coverage
What type of insurance is needed when you have a lien or loan on your car?
comprehensive coverage
Will you have to pay the lien company the rest?
if u sold the car yes,if you totaled it the insurance should pay it off providing you had full coverage and not at fault
Do you have to have collision on car that has car loan?
A bank will want full coverage. It is a state law to carry comprehensive insurance ( collision ) on any vehicle with a lien.
Is it the responsibility of an insurance company to notify the lien holder on a vehicle if any change in coverage?
Yes, they are required by law to notify your lien holder of any change in coverage.
Can you get in trouble if you want to switch car insurance before your policy ends?
No you can fire them anytime you want but must maintain full coverage on a car if there's a lien.
Can a lien holder charge interest on forced placed insurance?
Yes they can. If the lien holder had to advance the premium to pay for the insurance, the amount is added to your finance note with the interest. Force Placed Insurance is coverage obtained by the lien holder to cover their interest in the financed property when the buyer fails to meet the required coverage conditions of the finance note. No coverage is provided to the buyer at all, only the lien holder. Basically if the finance company has obtained force placed insurance coverage then the buyer is already in default on the terms of the finance contract. The cost of the coverage is added to your bill or finance note without benefit of coverage to the buyer.
