Can my car be repossessed if one insurance policy cancels, but another is valid?

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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: Sep 5, 2012

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Insurance Question from Winder, GA

Asked on 09/05/2012

Can my car be repossessed if one insurance policy cancels, but another is valid? My car was repossessed by my finance company less than 24 hours after my insurance policy cancelled. I received a quote from another insurance company and added their coverage to it the Friday before, so my car had double coverage. The local agent contacted my finance company and they put out a repossession order because they had not received the binder from my new insurance company. They now want to charge me $150 to get my car back, which is the towing fee and one car pymnt. Can they do this?

Answer given on September 05, 2012

this is not an insurance issue.


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