What will lienholder do if I reduce auto insurance coverage?
Wednesday, January 21st, 2009 at
10:29 am
Robert K asked:
I’m switching from GMAC to Capital One, but I can’t afford full coverage auto insurance anymore. When I reduce it, will Capital One find out and what would they do?
I’m switching from GMAC to Capital One, but I can’t afford full coverage auto insurance anymore. When I reduce it, will Capital One find out and what would they do?
Tagged with: Capital One • Full Coverage Auto Insurance • Insurance
Filed under: Auto Insurance
Like this post? Subscribe to my RSS feed and get loads more!
if they require it you better keep it ,yes they can find out ,they can repo your car
Yes, The bank will require the insurance company information. The insurance company will have to disclose the level of insurance that you have. If you do not have enough, the bank will send you a letter requesting that you get the proper amount of insurance or they (the bank) will assign insurance at there rate…you do not want that to happen since their rates are usually double what you can get the same coverage for. Good Luck.
Most likely they will get a policy on your car and tack the premium unto your car payment. Their insurance will be A LOT more then what you could get on your own. You have to keep full coverage, I am sure it is in the terms of your loan. Shop around for the cheapest policy. Do you have a home owners policy? Usually you can get a multi policy discount if you use the same company!
The insurance company will notify the lien holder because there is a lien on the title of your vehicle.
They will purchase insurance for you. Believe me, they won’t be looking for any kind of bargain for you.
They will take the cost of the premiums out of your car payments. It will end up taking you a lot longer to pay off your loan and will cost you a lot more money in the long run.
Well, when they find out you don’t have the minimum coverage as required in the agreement you signed, they will add their own coverage and send you a bill for it. And it will be a lot more expensive than the full coverage you “can’t afford” anymore. Either way, you’ll end up paying for full coverage.
For car insurance the quickest method to get a cheap quote is do a auto policy comparison. Be sure to choose the same coverage levels, you can get an quick quote to compare against others. Use the same zip code, car make and model, mileage and driving history to make sure you get accurate comparison. To get easy auto insurance quotes, go to and you can compare all the major auto insurance companies.
It looks like a non easy cracking nut,looking arount here ,you may find something useful for you.