What to do if the lienholder of my vehicle mistakenly repossed it for failure to provide insurance?

UPDATED: Aug 20, 2011

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What to do if the lienholder of my vehicle mistakenly repossed it for failure to provide insurance?

On the 11th of this month I received a phone call from the lienholder of my vehicle stating that they received a cancellation notice from my insurance company. I did understand that my vehicle needs insurance at all times. I called the insurance company that afternoon, paid the insurance, and asked that they provide a receipt or receipt number to the lienholder since I did not have a receipt to provide. They agreed. However 2 days later, the lienholder repossessed my vehicle for failure to have insurance. I paid $350 to get my vehicle back. Who do I need to sue as I had insurance?

Asked on August 20, 2011 Texas


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

The problem that you have is that under your loan agreement you agreed to have insurance for the vehicle that you were making payments on. You failed to have uninterrupted insurance on your vehicle resulting in it being repossessed due to lack of insurance.

When you reinstated the policy of insurance for your vehicle, you should have immediately requested a copy of the reinstated insurance policy be sent to you and when received, you should have immediately e mailed or faxed a copy of it to your lender. You failed to do this.

From what you have written, you do not have a basis to sue anyone because the repossession of your car was the result of your own negligence.

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