Can an insurance company sell you a limited liability cover policy on your automobile, knowing that there is a lein holder on it?

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 5, 2010

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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.

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