Can a car dealership repo/shut off my car due to insurance problems?

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Can a car dealership repo/shut off my car due to insurance problems?

I recently got a car through a local car dealership. I had full coverage insurance on that vehicle. I had a laps and cancel on that policy and the car dealership shut my car off with the GPS they installed. They threatened I have 3 days to get insurance back on the vehicle or they will repo the vehicle. I am up to date on the car payment but Lapsed on my insurance. Can they repo/shut off my car for insurance problems? They are also demanding that it be a certain type of full coverage like no more than $500 deductibles.

Asked on June 6, 2018 under Business Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It depends on the terms of your contract with them--the contract by which you have bought or leased the car. They can do whatever the contract says (that is, they have whatever rights the contract, by its plain terms, gives them), no more and no less. Review the terms of the contract to see if they can repossess for this reason (and in the time frame they are trying to do, or if they need to give you more time to correct the situation), and also what kind or amount of insurance you are obligated to carry.

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It depends on the terms of your contract with them--the contract by which you have bought or leased the car. They can do whatever the contract says (that is, they have whatever rights the contract, by its plain terms, gives them), no more and no less. Review the terms of the contract to see if they can repossess for this reason (and in the time frame they are trying to do, or if they need to give you more time to correct the situation), and also what kind or amount of insurance you are obligated to carry.


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