What can a lienholder mandate regarding insurance coverage on a vehicle?
Question Details:
I have the title to my car that I bought from and have been making payment to a buy here pay here car lot. the title had no lienholder. They are telling me that because they are a lienholder that I have to have comprehensive and collision. I explained there is no lienholder on my title and that i have the title. they then threatened to add $200 a month to my car payments. Can they do that and is there anything I can do to protect myself?
If you are making monthly car payments for the vehicle that you have, you need to carefully read the loan agreement for the vehicle in that its terms and conditions control the obligations that you owe to the lender and vice versa.
If the loan agreement calls for certain insurance for the vehicle so long as the loan is in effect, then contractually you are obligated to have this insurance in place. If you do not, then most likely under the loan agreement the lender can place insurance on the car to protect its security.
