answersLogoWhite

0

When your vehicle is in the process of being repossessed, the bank is starting the process of taking back ownership. If you have not maintained continuous insurance coverage on your vehicle, chances are the bank will force place insurance which will add to your loan balance. If you are anticipating repossession, keep insurance on the vehicle until the vehicle is claimed. If you intend to discuss payment arrangements to get your vehicle back, you must keep insurance prove you are financially responsible. If you do not intend to get the vehicle back you can cancel your auto insurance after the vehicle is no longer yours. When the bank takes possession, you no longer have a financial interest in the car. Notify the DMV before cancelling the insurance that you are no longer the registered owner of the car to prevent fines for no insurance with the state.

User Avatar

Wiki User

14y ago

Still curious? Ask our experts.

Chat with our AI personalities

MaxineMaxine
I respect you enough to keep it real.
Chat with Maxine
LaoLao
The path is yours to walk; I am only here to hold up a mirror.
Chat with Lao
RossRoss
Every question is just a happy little opportunity.
Chat with Ross

Add your answer:

Earn +20 pts
Q: When can you drop auto insurance on a repossed auto?
Write your answer...
Submit
Still have questions?
magnify glass
imp