can the finacial credit union take an insurance policy over my vehicule with no concent?
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UPDATED: Jul 10, 2012
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Insurance Question from Hainesville, IL
Asked on 07/10/2012
can the finacial credit union take an insurance policy over my vehicule with no concent? I'm paying my car and the credit union took an insurance back on 2007 because they say did not receive proff of insurance. Unfortunatelly I cannot proof I had insurance back on 2007 as I changed bank account an have no records of payments. It is legal for this credit union to take a policy in my name with no concent? also the price is 4,114.00 when a normal full coverage policy cost around 1,400.00 is this legal? what can I do?
Answer given on July 11, 2012
If you have a loan on your car, as a part of the loan agreement you are required to have insurance on the car for physical damage and evidence of the insurance is to be sent to your lender. In addition, they are to be named on the policy as a loss payee so that any claim for damage to the car will be subject to their approval of repairs.If you did not have insurance on the car then the lender does have the right to place “forced” insurance on the car. This protects only the lender and does not provide for any liability coverage. It only protects the car if it is damaged due to an accident or other covered loss. In addition, the cost of the forced insurance is passed along to you since youare in violation of the terms of the loan.If you have insurance at the time the lender placed hte insurance, thenyou need to provide proof of the insurance to them to get them to remove the charges. You should have a record of the insurance company that carried the insurance. You can contact them for a copy of the old policy. You can then send a copy to the lender. If you don’t remember who the insurance was with, then you will have to pay the lender for the insurance they put in force on the car.I’m sure the lnder wrote and/or call you about the insurance before they placed their own insurance. You should have responded to them immediately when you were notified of the forced insurance.
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