Unwilling car insurance coverage
I’m buying a car right now and I don’t have car insurance because I can’t afford it, but I found outthat my car insurance company took out a policy for me and now I have to pay it. Can they do that?
Mike
Yes, they can.
The banks or finance companies that finance you while you are buying the car are responsible for your payments if you default on them, so it’s natural that they would want to make it as unlikely as possible that you will do that. If you get into a car accident and total your car while you are still paying for it, then you will still owe all that money but have no car. In that situation, most of the time you won’t be so happy about continuing to make payments about a car you won’t drive.
That’s why the banks and financers are able to require you to get comprehensive and collision insurance on your vehicle. If you don’t get it, then they can either repossess your vehicle or they can take out a policy themselves and expect you to pay it.
Cheers,
Fashun Guadarrama.
Loading ...