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What happens if you have no insurance on a vehicle that is still be financed? This is in the state of NJ.? |
What happens if you have no insurance on a vehicle that is still be financed? This is in the state of NJ.? this is going back about 10 yrs, but when i lived in jersey, i was cancelled. the insurance company was required to send the fianance company a copy of the cancellation notice i received. the fianance company will then take out thier own policy if they believe you are not covered. the cost of that policy along with a huge interest rate will be added to your loan.i imagine that makes for a big suprise when you think the loan is fianlly paid off only to find an additional $1000 or 2 due.... ello, well usually your loan company will be notified by your insurance of lapse of insurance. If you do not have coverage and you total the car you will still need to complete your payments. If you hit your car and it is not totaled your loan company will usually not know of the accident. in NY State if you let your liability ins. lapse the state will charge you appx. $12.00 per day. johnny Usually if you don't provide proof of coverage the loan company will add coverage to protect them in case of a total loss. They will then add this amount to the payment. It DOES NOT protect you are provide medical or liability coverage. Well, as soon as the finance company finds out it's not insured, they RETROACTIVELY add coverage to the car, and send you a bill. It costs about 10X as much as normal insurance, and if you don't pay it, they repo the car. If you have an accident with this car, well, you still have to make the payments, and it doesn't get fixed. Don't forget, your car can be confiscated by the police if you get stopped with no insurance. That doesn't mean you can stop paying on it, though!! agent, 21+ years |
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