Get your free
Insurance Quotes
You could save up to $44.43/month* on Auto Insurance

Will gap insurance help if your car is repossessed in Arizona?WHAT “GAP” does it cover?? The gap inbetween your down payment and
what the car is worth or the amount you lack to be current with the
payments? Read your “GAP” ins. contract to be sure of the coverage.
I’ve never heard of it covering a repo.

How long should you keep insurance on a car that was repossessed?

IF you plan on getting it back, dont drop it. If you’re NOT getting it back, drop ASAP. The lender has coverage. Good response. If you can’t afford to get the car back, drop the insurance. You should not have coverage on the vehicle that is not longer in your possession. Let the lender assume the responsibility. Why pay for something you don’t have anymore?

What will happen if you do not have insurance on your car and the lender is about to repossess it?

Reaction .
If not having ins. puts you in default of the contract, that may be why they are going to repo the car. lenders insist that the collateral be covered by ins. to protect them, not you..

Can someone report your car to be repossessed if they know that you do not have insurance?

IF they hate you enough, IF they can find out who your lender is, IF the lender wants to repo because of that fact, The ins. co. is supposed to notify the lender anyway if you let the policy lapse….

If your car has been repossessed are you required to proceed insurance and for how long?

Once your car is repossessed, it is covered by the repo companys and the lenders VERY expensive ins. No need for you to maintain coverage UNLESS you plan on redeeming it ASAP.

If you have GAP insurance will the leftover balance be paid off when your car is repossessed?

What does your GAP policy say? Do YOU have it or the LENDER? Normally, lenders place it on a loan to cover the lenders losses, not yours. If you hav GAP insurunce On you Insurance will pay of whatever the car deler does not

Can you keep buying insurance for a repossessed car and drive legally?

IF you mean a car that is being searched for by the lender, YES. You sure can RISK spending the money one day for ins. and watching it be towed away the next. Its your gamble..
If you just want insurance to drive any car, I once read that you can get insurance without a car. Ask an insurance agent.

Related video:

If you repossess your car do you have to proceed 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.

In Pennsylvania can you instantaneously cancel your car insurance if the car is repossessed?

Reaction .
if you don’t plan on getting it back that is what to do. but most insurers in pa are notifying pa that you canceled insurance ant they suspend your plate for 90 days.

Can your car get repossessed for not paying your insurance?

Response .
IF your loan contract specifies that you must maintain insurance covering the vehicle, the reaction is YES..
Reaction .
Just an echo of the previous response, most major lenders require that the vehicle maintain utter coverage insurance. It states in your finance agreement that the vehicle must remain insured or it can be repossessed.

When your car is repossessed when do you cancel your insurance coverage?

The same day that you determine you aren’t getting it back. It would be wise to wait until then because if the bank repo’d it to kinda just remind you that being Three payments behind isn’t a good thing, you might get it back and then you don’t have to go through the entire insurance application process again. ResponseYeah for sure do not cancel anything until it is no longer in your name either. I’d wait until the title transfer is accomplish as well. ReactionYou should cancel your insurance the moment your car is repossessed.The moment the car is hooked up(as the above two repo morons will tell you)it is no longer your car.So if you would like to cover someone elses vehicle with your insurance you go right ahead but you are wasting your money and your insurance coverage.Dishonest repo guys(like the above two scumbags) want you to keep the insurance on the vehicle so if they harm the car or steal stuff from it it will go on your insurance. Response Amendment: Never cancel an insurance policy until you have a fresh policy in place. If you do it will cost you more in the long run. Insurance companies are looking for loyalty and longevity without lapse in coverage. Sometimes you can possibly suspend, cancel or reduce coverage but never cancel it. The moment the vehicle is repossessed does not release you from the contract agreement. Read it. In most cases until the vehicle is transferred out of your name via the title of ownership, you must maintain physical harm coverage or they can force place it and take the premium out of the proceeds. Reduce to minimum but don’t cancel it.

Can your car be repossessed if you don’t have insurance?

Insurance is there to protect you while you drive. Your loanfrom the bank lets you keep the car. Albeit, most banks requireyou to have insurance before lending you money in the firstplace. .
If you wished to know whether your car can be taken away just fornot having insurance, then no it can’t. Just pay the bills and itis yours. You just can’t drive without insurance. Reaction .
Yes. Part of the security agreement you signed when the bankgave you a loan says that you will keep liability, collision, andcomprehensive insurance on the collateral. This is to protect theBANK’s interest as well as your own financial protection. If youare in an accident, they want the collateral to be repaired or paidfor and do not want to be sued for the other driver’s injuries. Ifyour insurance is terminated, the insurance company will notify thelienholder and they will repossess the car. Repossessed. Yes. If the loan requires that the car be insured(almost always to protect the banks investment) it can berepossessed for no coverage. Repossession does not take yourresponsibility away from the loan on the vehicle. You are chargedfor fees such as towing, the auction sale loss (what you owe on thecar after it is auctioned) They are never sent back to the dealerand resold. They are used cars and must be auctioned. The average”left over” on a repossessed vehicle (1-3 years old) is about $6000that you are still responsible to pay. ++++++++++++++++++++++++++++++++++++++++++++++++++ Albeit they CAN repossess your automobile, usually they don’t -they don’t want the hassle of repoing the car, selling it, andpaying all the service fees, then having to attempt to collect theirmoney from you. What I have noticed repeatedly is that if you don’t have insuranceon the automobile, the bank/credit union/finance company will takeout insurance for you. If you read the fine print on the loanagreement, there usually is a clause in there that permits them todo this. When they do, the insurance is usually the state minimum requiredliability and UIM insurance, and maximum comp/collision – they wantto protect their investment. The premiums for the insurance coverage are tacked onto the loan -either the payments increase, or the term of the loan is extendedto cover the insurance payments. Considering that there are so many cut-rate insurance companies outthere, you don’t want the loan holder to obtain insurance for you,unless you have NO other options.

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.

Will gap insurance help if your car is repossessed in Arizona?

What happens if insurance has lapsed with car harm before repossession?

Response .
You will have to pay the difference inbetween what the finance company gets when they sell the car and the ballance on the loan. All it means is that the finance Co would have gotten more for the car if it hadn’t been bruised so you would have owed less on the remander of the loan.

How do you get a car back after repossession for no insurance?

Response .
Since you have violated the terms of the loan, there is no obligation for the lending institution to reinstate the loan. So you can pay off the loan in total but if they don’t want to sell you the vehicle, they don’t have to. It’s theirs now. They get to dispose of it as they feel suitable..
However, if it was for no insurance they will most likely reinstate the loan. Just call them and be very nice and let them know that they sent the bill to the wrong address or something. I have just recently gotten my car back after it was repoed for no insurance. It will suck for you tho’, they take your private items and re-sell them to you. What a steal.

Are you responsible for maintaining your auto insurance after your car has been repossessed?

Reaction .
No. DMV ties the insurance to the license plates. If you still have the plate, then the state wants to see active insurance. This is the only way they know you still have the vehicle. In Florida, you can turn in the plates and receive a receipt for them. This will permit you to obtain fresh plates at no charge when you get another vehicle. You can also sell them back for up to 100.00 and pay for a fresh plate later when you purchase a fresh car.

Can a car get repossess because of no insurance?

Reaction .
No.Most (99.9%) of the lenders require you to maintain Comp.& collision Ins. on the vehicle the money was loaned for and secured by.If you fail to do this the lender can, and in most cases, will put this Ins. on the vehicle and you will be charged. The charge for Ins. placed on the vehicle by the lender will be fairly high, and it is then added to your payment. If you get your own Ins., the lender will cancel the ins. they placed on the vehicle.

In Arizona do you have to pay the balance in utter if your car is repossessed?

I have never lived in Arizona but I am in car sales and am familiar with the law in Tennessee and Virginia and North Carolina I would imagine the law would be similar because of interstate commerce laws. If a car gets reposessed that has a balance on it from the leinholder the leinholder has a reposibility to its shareholders to recover as much of the risk as possible. What leinholders do is take a vehicle to an auction or private sale and get the most money they can for it. If the amount owed by the individual is $12000 and the financial institution only recovers $8000 it is the responsibility of the debtor to pay the difference of $4000 plus any charges accrued to prpare the vehicle for sale such as tow truck and or auction fees. if the car gets sold for more than $12000 than the former borrower gets the difference because it is still considered their asset and debts.

Is it legal to repossess a car at 7 A.M. in Arizona?

Reaction .
Yes, as long as the repossession agent did not commit a breach of peace as defined under the laws of the state or municipality in which the vehicle was recovered.

Can a car be repossessed due to no insurance?

Response .
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 utter coverage insurance on them by the bank. This is because until you pay off the loan the bank technically possesses your car, and they want to protect their investment. If you are hesitant if you have a lien on the car, take a look at the title. If there is a lien, it will display on there..
If you are thinking, “How will they know?” here is the response 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 give up 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.

Is Gap Insurance on cars worthwhile?

GAP insurance may well be worthwhile. GAP insurance is extra car insurance, generally obtained from the dealer that sells the car, that covers the difference inbetween what the insurer pays for a total loss of the car and what may be owing on the car loan. Normally, if a car suffers a total loss, the insurer will pay the actual cash value. This is the value of a vehicle of like, kind and quality, with similar mileage, accessories, in similar conditon; the actual cash value is calculated for the same general geographic area as the insured vehicle. Because the amount owing on the loan may be more than what the car is worth, GAP insurance pays the difference. rather than the insured being responsible for paying it to the lender. Naturally, if you paid in utter for the car upon purchase, you do not need GAP coverage. Likewise, once you pay off the car loan, GAP coverage may be canceled.

If you have gap insurance will the left over amount owed on a care in repossession be paid off?

Gap insurance is for in case of an accident your car is totaled.Gap takes care of the difference inbetween blue book and the balance of your loan, so you end up even and not paying a loan payment on something you no longer have.

Your car shows it is wielded by an insurance company can they repossess it from you?

Who borrowed money to buy the car? If the reaction isyou, and you are the one who has failed to honor you obligation to make payments on time, they for sure can repossess the car from you. The lender holds a lien on the vehicle, no matter who’s name is on the title..
When you finance or lease a vehicle, your creditor holds significant rights on the vehicle until you’ve made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car..
Talking with Your CreditorIt is lighter to attempt to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you’ll be late with a payment. Many creditors will work with you if they believe you’ll be able to pay soon, even if slightly late..
Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may deny to accept late payments or make other switches in your contract and may request that you come back the car. By voluntarily agreeing to a repossession, you may reduce your creditor’s expenses, which you would be responsible for paying..
Recall that even if you comeback the car voluntarily, you’re responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report..
Seizing the CarIn many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a “default.” In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are permitted on your property to seize your car without letting you know in advance..
But creditors aren’t usually permitted to “breach the peace” in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace..
Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property..
A creditor usually can’t keep or sell any individual property found inwards. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can’t account for articles left in your car, talk to an attorney about whether your state offers a right to compensation..
Selling the CarOnce your creditor has repossessed your car, they may determine to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold..
In either of these circumstances, you may be entitled to buy back the vehicle by paying the utter amount you owe, plus any expenses connected with its repossession (such as storage and prep for sale)..

Related video:

In some states, the law permits you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession..
The creditor must sell a repossessed car in a “commercially reasonable manner” – according to standard custom-made in a particular business or an established market. The sale price might not be the highest possible price – or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable..
Paying the DeficiencyA deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $Two,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing..
In most states, a creditor who has followed the decent procedures for repossession and sale is permitted to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract..
Depending on your state’s law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only chance to present any legal defense..
If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment.

Does gap insurance cover a repossession?

Gap insurance only pays if the vehicle is totaled in an accident orstolen and not recovered. It does not cover the deficiency balanceafter a repossession sale.

Do you have to carry car insurance if the car has been repossessed.?

Until that car is sold at auction, you have a vested interest in that vehicle. What if it burns while sitting on the lenders lot? That would be your loss. I would keep the insurance until this is lodged..
When you finance or lease a vehicle, your creditor holds significant rights on the vehicle until you’ve made the last loan payment or fully paid off your lease obligation. These rights are established by the signed contract and by state law. If your payments are late or you default on your contract in any way, your creditor may have the right to repossess your car..
Talking with Your CreditorIt is lighter to attempt to prevent a vehicle repossession from taking place than to dispute it afterward. Contact your creditor when you realize you’ll be late with a payment. Many creditors will work with you if they believe you’ll be able to pay soon, even if slightly late..
Sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you reach an agreement to modify your original contract, get it in writing to avoid questions later. Still, your creditor may reject to accept late payments or make other switches in your contract and may request that you comeback the car. By voluntarily agreeing to a repossession, you may reduce your creditor’s expenses, which you would be responsible for paying..
Reminisce that even if you comeback the car voluntarily, you’re responsible for paying any deficiency on your credit or lease contract, and your creditor still may report the late payments and/or repossession on your credit report..
Seizing the CarIn many states, your creditor has legal authority to seize your vehicle as soon as you default on your loan or lease. Because state laws differ, read your contract to find out what constitutes a “default.” In most states, failing to make a payment on time or to meet your other contractual responsibilities are considered defaults. In some states, creditors are permitted on your property to seize your car without letting you know in advance..
But creditors aren’t usually permitted to “breach the peace” in connection with repossession. In some states, removing your car from a closed garage without your permission may constitute a breach of the peace..
Creditors who breach the peace in seizing your car may have to pay you if they harm you or your property..
A creditor usually can’t keep or sell any individual property found inwards. State laws also may require your creditor to use reasonable care to prevent others from removing your property from the repossessed car. If you find that your creditor can’t account for articles left in your car, talk to an attorney about whether your state offers a right to compensation..
Selling the CarOnce your creditor has repossessed your car, they may determine to sell it in either a public or private sale. In some states, your creditor must let you know what will happen to the car. For example, if a creditor chooses to sell the car at public auction, state law may require that the creditor tells you the date of the sale so that you can attend and participate in the bidding. If the vehicle is to be sold privately, you may have a right to know the date it will be sold..
In either of these circumstances, you may be entitled to buy back the vehicle by paying the total amount you owe, plus any expenses connected with its repossession (such as storage and prep for sale)..
In some states, the law permits you to reinstate your contract by paying the amount you owe, as well as repossession and related expenses (such as attorney fees). If you reclaim your car, you must make your payments on time and meet the terms of your reinstated or renegotiated contract to avoid another repossession..
The creditor must sell a repossessed car in a “commercially reasonable manner” – according to standard custom-made in a particular business or an established market. The sale price might not be the highest possible price – or even what you may consider a good price. But a sale price far below fair market value may indicate that the sale was not commercially reasonable..
Paying the DeficiencyA deficiency is any amount you still owe on your contract after your creditor sells the vehicle and applies the amount received to your unpaid obligation. For example, if you owe $Two,500 on the car and your creditor sells the car for $1,500, the deficiency is $1,000 plus any other fees you owe under the contract, such as those related to the repossession and early termination of your lease or early payoff of your financing..
In most states, a creditor who has followed the decent procedures for repossession and sale is permitted to sue you for a deficiency judgment to collect the remaining amount owed on your credit or lease contract..
Depending on your state’s law and other factors, if you are sued for a deficiency judgment, you should be notified of the date of the court hearing. This may be your only chance to present any legal defense..
If your creditor breached the peace when seizing the vehicle or failed to sell the car in a commercially reasonable manner, you may have a legal defense against a deficiency judgment. An attorney will be able to tell you whether you have grounds to contest a deficiency judgment..
Reminisce this repossession will stay on your credit for 7 years.

What if your car repossessed with gap insurance?

The gap insurance is part of your auto loan so I am not sure what your question is. Gap insurance covers your car if you total it and the fair market value for your car is below what you owe. If your car gets reposessed, you still owe the lender. Actually, the cost of the gap insurance is flipped into the loan – it’s not part of the loan. If you can find your original paperwork from when you bought your car, find the information on the company that issued the gap insurance policy, and then call them and tell them you no longer own the car, and see if you can get a partial refund on the premium! Can’t hurt to attempt, right? I do vehicle refinances, and our auto loan contract includes the gap insurance (albeit we call it something else) for free, so I have helped several people cancel their gap coverage, albeit we usually do it pretty early in the loan. Same with credit disability insurance, if you have it.

Will gap insurance help if your car is repossessed in Arizona?

In California can you instantly cancel your car insurance if the car is repossessed?

I don’t see why not – but if it’s the only car on your policy ask your agent to give you a “hired and non-owned” policy so you still have liability coverage if you drive someone else’s car or rent one. Also, if you plan to substitute the car right away or lodge the issue with your auto lender, you’re most likely better off not canceling the coverage.

How do you find out if your car is going to be repossessed in Arizona?

If you are more than 1 payment behind rest assure it will be repossessed. The way to prevent this is to catch up on your payments ASAP. Default on the loan agreement you signed, and they will repossess the vehicle. They will then sell the vehicle and you will pay the difference in what the vehicle sells for and the balance left on the loan. They will sue you for the balance, and you will pay. Your credit will then be ruined for 7 years. Avoid this if there is any way possible. Talk to the lender and see if something can be worked out. You do not want the car repossessed.

Does gap insurance cover repossession in the state of NY?

No, GAP Insurance covers the difference inbetween the market value of the vehicle the insurance company pays you after a total loss and what you owe to the financial institution.

Can you insure a car that is not in your name in Arizona?

Because once again, you cannot buy insurance on something that you don’t own. If a claim occurs the company cannot pay you for damages because it is not your vehicle and you therefore do not have the financial loss. The company cannot pay your Dad because he does not have a legal insurance contract with the insurance company. The contract that you do have is then null and void because you committed material misrepresentation and fraud. Insurance for a Car not in your NameYes, You can Insure the property of another person. So Long as you have authorization to do so and the proprietor is benefited, or an other insurable interest in that property exists. An example would be a case where dad says ” OK, you can use my spare car but you gotta get your own coverage”. If You have permissive use from the possessor of a vehicle, then obviously you have an insurable interest. However, Only the Legal proprietor of the Property or the designated agent of the possessor can receive compensation for the property in the event of a covered property loss. Whether your insuring for liability only or you buy total property coverage you need to list the vehicle holder as a named insured on the policy along with yourself. Then Dad will be blessed and proud that you were prudent enough to fully insure his and your interest in the vehicle he loaned you. List all drivers for liability purposes and list dad for his property and liability interests. Another example would be almost every time we Rent A Car. When we purchase the daily insurance with the rental car we insure our liabilities in the use of Someone Else’s Vehicle. You can not insure the property of another when no insurable interest exists. It would be unlawful to insure the property or life of another where the intent is to build up unduly from another persons loss. CORRECT ReactionYou cannot insure a vehicle that you don’t own. Just because the possessor gave you permission to drive the car does not mean he is signing over interest in the car to you. Your name cannot go in the named insured section of the application. You can be listed as a driver but not as the named insured unless you own the vehicle. Rental Car business is not like what you are discussing here. The Rental Car Service has the person who if renting the vehicle to sign a fresh contract with them to provide certain exchange of assures from both parties. This contract is listed as acceptable in part with the automobile insurance contract the holder signed with the insurance company. Provisions in the auto insurance contract permit for some transfer of certain coverages in certain instances. The fact is that in a individual automobile insurance policy the possessor of the vehicle must be the named insured on the contract.

Will gap insurance covers repossession in the state of FL?

Gap insurance will not cover repossession in any state or territory of the US. Repossession is not a valid claim for insurance. In fact, it is possible your insurance could be cancelled as a result of the repossession, making you high risk.

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 proprietor (the lender) recovers their property from the defaulter.

What is the average cost of car insurance in Arizona?

The average auto insurance premium for the citizen of Arizona is $1856 in 2009; the national average is $1,796. Even within the state of Arizona, rates have switched over the past few years. Comparing the current average car insurance rates, the average auto insurance premium in Arizona is 14% higher in the year 2009 than the year 2008. In year 2008 was 9% lower than 2007 in Arizona.

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.

What happens if you total your car and have gap insurance?

if your car is worth 10k and u own 20k and your car gets totaled, your car insurance will cover 10k for what your car is worth and cap will cover the rest. you wont get any money but you also wont have anymonthly payments anymore.

Does insurance help with rental when car repossessed?

I’ve never heard of an insurance policy that covers repossession. Reminisce, 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.

Related video:

Gap insurance is from the auto loan or your insurance on the car?

GAP (ensured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease. It’s purpose is elementary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.

Does buying a repossessed vehicle raise your car insurance?

In this state buying a repossessed vehicle is no different from buying any other vehicle as far as insurance is worried. The insurance agent checks over the car, takes pictures, checks the odometer, and quotes the rate just like any other used car. Of course if you have one car and you purchase a 2nd car, your insurance goes up.

Will gap insurance help if your car is repossessed in Arizona?

Can your car get repossessed for not having the right insurance?

If insurance is required by your contract then the ‘wrong’ insurance might be a contract disturbance permitting repossession. You have to read your contract.

Can a car be repossessed because of no collision insurance when standard insurance was active on the car?

If your contract requires total coverage and you do not have total coverage, you are in disturbance of the contract.

Can a car be repossessed due to cancelled insurance in South Carolina?

You would have to read the specifics of your financing contract. Generally you are required to maintain liability and comprehensive insurance coverage, and if you fail to do so then you are in default on the contract. Sometimes the contract permits the lender to instantaneously force you to buy their insurance at an shocking price. Once you are in default, the lender may repo the car.

Does gap insurance on you car expire?

GAP insurance helps cover the difference if your car is deemed a total loss and is worth less than what you owe on the loan. GAP insurance only runs out when you pay down your loan enough that you have equity in the vehicle.

What is gap insurance for a leased car?

GAP coverage is very necessary especially in a lease situation. GAP coverage comes into play if a vehicle is deemed totaled. What GAP does is to pay for the difference in the actual cash value that is payable under the normal policy and the balance owed to the lease company or finance company of a loan. In the early years of a lease or loan the vehicle value falls quicker that the value of the vehicle. If you total the vehicle within this period you can find yourself without a vehicle but with a sizable amount of money due on a vehicle you cannot drive any more. GAP coverage will pay this difference. The Finance Dept of the auto dealership will attempt to sell you on this GAP insurance. Very first, no matter what they say, it is not mandatory to but it from them. Individual Auto insurance companies suggest GAP insurance that does the same thing for about 10% of the premium the dealership charges you for the same coverage. You will also have a right to cancel the coverage whenever you feel the value and loan balance have equaled out. One catch is that you must purchase the GAP coverage from you insurer withing 6 months of purchasing the vehicle. As a matter of total disclosure, I own and operate a petite Independent Insurance Company in Central Georgia and have for the past 22 years. Prior to that I worked as an agent for a direct writer of insurance for Three years.

Can finance company repossess car for no insurance?

Absolutely. The finance agreement that you sign when you purchase a vehicle states that you agree to carry utter coverage on the vehicle and to list them as the leinholder. By them being listed as leinholder they get notified of any cancellations, late notices, and renewals on the policy. It also gives them some special rights such as a 20 day notice before cancellation instead of Ten days. You pay for the extra Ten days notice. The finance agreement also states the maximum deductible that you can have on the policy. Reminisce that the finance agreement is a legal contract. if you break any part of the legal contract they have the right to repossess the collateral (the vehicle). The agreement also states that you are responsible for a repossession fee in order to get the car back. There is very likely storage fees involved as well.

Is AAA car insurance available in Arizona?

AAA car insurance is available in Arizona. It is available in almost all fifty states including Arizona. The only states it isn’t in right now include North Dakota and South Dakota.

Can a finance company repossess your car if you have no insurance?

No, but depending on which state you live in your division of motor vehicles (or equivalent) can fine you hundreds of dollars for not having insurance.

Can your car be repossessed due to lack of insurance?

No, but it can be impounded by the police. Lack of insurance is a crime, generally a misdemeanor, but if the degree is severe enough the police can impound it as evidence in a criminal case. To get your car back, you would need to provide proof of insurance, a valid driver’s license for the holder of the car and the insurance, and pay the fine for the crime as well as the storage fees for the car while it was in the impound lot. Repossession is done when you have failed to pay on the car loan. In essence, a car loan is a secured loan – if you don’t pay the money, the loaning institution can take the car and sell it to pay off the loan.

How can one acquire GAP insurance for their car?

If you are looking to get gap insurance for your car go onto Esurance. They have lots of deals right to fit you and they wont leave you empty pocketed.

Will insurance pay for a repossessed car?

Of course not! Itwasn’tstolen or wrecked, it was takenfrom you for failure to pay on the loan! Be sure to cancel the insurance.

Can a car only get repossessed for no insurance?

Absolutely. When you purchase and finance a vehicle you sign a legally tying 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 violated the contract and therefore the finance company can reposses the vehicle.

Can you get gap insurance in Georgia after you buy your car?

Sure. You are much better off to get GAP insurance from your insurance company than by buying it from the dealer. If you buy from the dealer you will pay lots of money for the insurance plus you pay for GAP insurance for the life of the loan in advance then pay interest on it as it is financed in your loan. GAP insurance is coverage for the difference in the actual cash value of the vehicle and the amount owed on the vehicle. Reason shows that you will only be upside down in your loan when you very first buy a fresh car because the value decrease swift the very first year while the loan doesn’t reduce as swift. You can purchase GAP coverage from your insurance company for a few dollars ($5-10) for a policy period and when the loan balance drops below the value of the car you can drop it. Say the very first two years of a five year loan you owe more than the value however it is very likely less. For two years you may pay $40 for the coverage from an insurance company then drop the coverage. From the dealer you paid $850 plus interest and you can’t cancel it even tho’ it will not pay off anything after the very first two years. To reaction your question, most insurance companies will let you add GAP coverage for the very first 6 months after you add the car to your policy.

Leave a comment

Your email address will not be published. Required fields are marked *