Can an insurance company sell you a limited liability cover policy on your automobile, knowing that there is a lein holder on it?
Free Insurance Quote Comparison
Secured with SHA-256 Encryption
UPDATED: Jul 5, 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 Brownstown, MI
Asked on 07/05/2010
Can an insurance company sell you a limited liability cover policy on your automobile, knowing that there is a lein holder on it? NULL
Answer given on July 17, 2010
I’m not certain what you mean by limited liability policy. However, an insurance company can issue a policy as you request. If there is a lienholder on the policy you are required to carry physical damage insurance on the car (comprehensive & collision) and list the lienholder on the policy. However, if you do not ask the insurance company to provide this insurance, or tell them there is a loan, they would have no way of knowing these facts. If you refuse to purchase that insurance, and only ask for liability insurance, that is what you will get. The lienholder can place forced insurance on the car through another source and billl you for the cost of the insurance.
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.