I am buying a newer used car and I was wondering how the bank that I’m getting a loan from finds out what insurance I have?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 15, 2010
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
Insurance Question from Frankfort, MI
Asked on 07/15/2010
I am buying a newer used car and I was wondering how the bank that I’m getting a loan from finds out what insurance I have? Do they contact the insurance company directly or does the insurance company get them the information? Thank you kindly! Bridget
Answer given on July 16, 2010
When you buy a car you are expected to call your insurance agent and tell them about the car. Your insurance agent will need the details-year, make, model, odometer and VIN (vehicle ID number) to get the insurance started. They also need the bank information so they can send them evidence of insurance. The paperwork you sign when you get the loan also gives the bank your insurance agent and/or company information. If the bank does not receive any paperwork from the insurance company within 10-14 days they will contact your insurance agent. If your agent did not have the information, or had incorrect information, they will then update your insurance policy and send proof to the bank. However, it is easier and quicker to just let your insurance agent know about the loan when you call for the insurance. Also, as you probably know, you will need to buy insurance on the car, not just liability insurance, if you have a loan.
IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and FreeAdvice.com AS IS. It has not necessarily been reviewed by the management staff of FreeAdvice.com nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although FreeAdvice.com has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on AttorneyPages.com to represent you.