The very first thing that they will do is to put coerced place coverage on the vehicle. This is a very expensive type of insurance that only protects the banks interest and only pays the bank. The premiums are added to your account and you are responsible for paying for the insurance. This insurance only provides physical harm coverage and will not pay for harm to your property or anyone Else’s. It does not provide liability and does not meet the state requirement to permit it to be driven on the street. The 2nd thing they will do is to repossess the vehicle because you have violated the contract that you signed with the lender to keep the required coverage on the vehicle. Oh yes, and the cost of impounding and storing the vehicle after it has been repossessed will also be charged to your account.
Does an auto insurance policy have to be in the same name as the car loan?
Lien Holders Insurance Indemnity Clause Yes, Your finance contract (Loan) almost always requires that theborrower provide a Utter Coverage Auto Insurance Policy on thevehicle being financed to protect the lien holders interest in theproperty until the loan has been sated. It’s a matter of yourfinance contract. Failure of the borrower to provide the coveragerequired under the terms of the finance agreement puts the borrowerin “Default” on the finance note subjecting the vehicle torepossession and other remedies at the lenders disposition. Include All Drivers For Utter Coverage, The Insurance policy should be decently in thename of the vehicle possessor with any extra drivers listed asadditional insureds on the policy. When the vehicle is still undera finance note. The finance company will generally require that thebuyer maintain utter coverage auto insurance until the note is paid.As this is part of the finance agreement signed by the buyer,failure to do so can subject the vehicle to repossession by thefinance company. Operators Liability For liability only, any driver may obtain a liability policy foroperation of the vehicle whether they are the proprietor or not, Sincethe Driver as well as the vehicle holder can both be held equallyliable for any loss regardless of who is driving, most insurerswill require you address the insured status of the proprietor as well. Owners Liability The proprietor “Name on Title” is just as liable for an accident in thevehicle as the driver is, even however the possessor may not have beendriving when the accident occurred. If someone was kind enough tosign for you to buy a car, the least you can do is make sure youdon’t expose them to a lawsuit over a future accident you may havein the car. This is why many states have begun requiring the ownerto have sufficient coverage regardless of whether the owneractially drives the car.
Can your daughter provide insurance for a car if the loan and the registration are in your name?
There are so many potential screenplays in this situation. Are you wishing to insure it via the daughter because she has a better record, thus better rates? That would, of course, be considered fraud, and is not advised. Additionally, they are going to rate the policy based on all drivers in the house, so the rates may not improve anyway. Does the daughter live in the same residence? Most other family members would also be covered, IN MOST CASES WITH MOST COMPANIES, but most also require a DMV check on each driver in the house. The company can also list a specific ‘named driver exclusion’. I.E. Seventeen year old Johnny has already received three violations; carrier will proceed coverage but require a named exclusion for Johnny. They will cover NO accidents or incidents in which Johnny is the driver. If she is NOT in the house, is not a regular driver of the insured vehicle, and has no legal relationship to the vehicle financially, but is better able to meet the financial obligation of the premiums, then you should simply have her give the monies to you each month.
What will happen if you do not have insurance on your car and the lender is about to repossess it?
If not having ins. puts you in default of the contract, that may be why they are going to repo the car. lenders insist that the collateral be covered by ins. to protect them, not you..
If you comeback your car to the lender are you still responsible to keep paying the loan?
Heidi, as a general rule, YES. You are responsible for the UNPAID balance due on the loan. Example, you owe 5000.00, car gets sold for 2500.00, you owe 2500.00 plus fees.Good Luck
Does the lender pay the loan off if the car is stolen while in his possession after a repossession?
NO, unless the ins. on the car pays off more than you owe.The amount the ins. pays would be the the equivilent to the auction price in the balance due on the loan.
Can your car be repossessed if your insurance incorrectly told the lender your policy had been cancelled?
IF the ins. co. told the lender the policy was canceled, then you were in DEFAULT and the lender will repo.The lender and the ins. co. will have to get that straightened out.
What do you do if the insurance for a totaled car does not pay off the car loan?
I faced the same thing about a year ago. The insurance company did not want to give me what was needed. I got on-line and found many cars that were just like mine and showcased them that my car was worth more than they were wanting to give me. They still did not want to give me what the car was worth. So I went to petite claims court and filed suit on the driver of the other car. The person’s insurance has to represent them. Also go and look at the comps that the insurance company are using for your car to see if you can substitute the car for what they want to give you. ResponseUltimately it is your responsibility that you either made low payments, took out a very long loan, or picked a car with high depreciation. The insurance company is not liable for the inflated amount you owe–only what the car is worth. ReactionThe insurance company will only give you the value of the vehicle, as per the “Kelly Blue Book”. They will also send an appraiser out to see what the condition of the car was, as in mileage, any previous harm. If the accident was another driver’s fault, you have to sue him and/or his insurance company for the remaining balance.Whatever you borrowed to obtain the vehicle wil always be more than the car is worth. You have already lost money on it as soon as you drove it off the car lot. But do your research. Go online for “Kelly Blue Book”, and get the estimate of the car’s value. If it is more, then dispute it with the insurance company. Print the page out. ReactionWhen you bought the car fresh or used from the dealer you had the option to purchase something called GAP INSURANCE from them (the Dealer, not the insurance company) for your exact situation. If you did not have enough equity in your car for the insurance pay off to cover it AND did not have gap insurance. basically you are screwed and responsible for the rest of the loan amount car or no car. Some people believe Gap insurance is a rip off so they do not suggest it to you and some just don’t know what it is. They do not need to be selling cars. Not fair but the way of life. Father is an insurance sales man. I also had a dame hit me I had GAP insurance and she did not. She still had to pay off the balance on the loan even tho’ she did not have the car. The courts won’t do much because you had the option to purchase gap insurance and you did not, it does not matter that you did not know.
What happens to a loan on a car when the loan holder dies and there is no cosigner or insurance on the loan?
The loan must be paid out of the estate (sell of home, life insurance policy, etc…) Otherwise, the estate will be held up in litigation and will not be closed or the beneficiaries will be coerced to pay the loan.
In Fresh York State can a lender repossess a car if it’s not delinquent and has decent insurance even when you are in default on an unsecured loan with the same creditor?
You need to contact your Attorney General about this one. You will get the correct reaction based on NY law..
Read your contract it should state if there is any “linkage” inbetween the loans.
What can you do if the lender repossess your car and they get half of the loan and you cant pay the balance?
The lender will come after you for the remaining balance after the car is auctioned.You can either announce banckruptcy or work out a payment plan…or thelender can seek a judgment to garnish your wages.
If you loan your car to a friend and they wreck your car is your insurance responsible?
yes. plain and elementary. you lent the car and then they are a permisable driver. As long as they are not n excluded driver or a resident in your house..
It depends, if your policy is a named driver & the driver is not named, your policy will not react. If your policy is a standard auto policy then yes, your policy will react.
What can the lender do to you if the loan is not paid in total when the car is repossessed and sold and a balance is stll owed?
They will attempt to collect the balance themselves or sell it to a collection agency or seek a judgment thru the courts. ResponseIt’s called a deficiency. Google it and you can read more about the specifics and local laws that apply in your area. ReactionGenerally, they usually attempt and get you to come in and pay it off. If they can’t, then they usually either proceed with legal activity or charge it off. If they take legal activity, you may lose and owe attn’y fees as well. In the end, if found responsible, you will have a judgment placed on you and they can garnish wages, tax refunds or any income you receive. A judge could also order you to sell other property to pay it off (in extreme cases). Bottom line, it’s always just lighter to pay off the loan.
If you stopped paying your car loan but the lender never repossessed the vehicle what can you do with it?
If You Have A Clear Title On Them, About Anything You Want. If They Have A Lien On The Titles, It Will Have To Be Liquidated By Payment Of Loan. Otherwise Contact The Loan Company And Have Them Tell You How To Deal With This In Writing. Be Sure You Get Written Information Before You Do Anything If They Display A Lien.
Can a co-signer take possession of a car if the primary borrower does not have auto liability insurance in Texas but the lender has taken out insurance to cover the car?
Yes, They can because that means that the primary borrower hasfailed to meet the requirements of the lender by maintainingcoverage on the car. You are already in Default and subject toRepossession by not having the vehicle insured. This failure alsoincreases the risk to the cosigner who is a guarantor on the note.If they determine to Repossess the vehicle and call in the note, yourcosigner can be sued and will be held jointly and separately liablefor the entirety of original note he cosigned as well as any newcharges that have been added due to the primary borrowers breech ofcontract. .
A co signer can take charge of the car if the person theycosigned for is not able or does not do what they agreed to. When afinancial institution takes out insurance on the car it is tosolely keep the institution from being sued, it is not to fix orcover the borrower in anyway, but the borrower will have to pay forthe insurance that the financial institution takes out, theyusually put it onto the end of the note. Best to keep insurance onthe car.
If you are the co-buyer cosigner on a car loan and not the registered proprietor can the lender come after you if the registered proprietor let the insurance lapse and totaled the car?
Yes, they can make you pay for the vehicile, When you signed the finance note you promissed to pay for it if the other buyer did not. You are both identically and severally liable for the promise note you signed..
Absolutely. As addressed in many other questions here concerning co-signing..
The very next thing you should do is take that paperwork, you know the ones with your signatures and initials all over it, and read it. See what you agreed to and what the responsibilities of the signers are. .
The essence of which is, co-signing is virtually the same as signing for the loan. You have all the responsibilities of the primary signer (without the need for being on the title to the property) and stand in their place if they don’t perform. What exactly did you think the meaning and need for you signing was for?
What does the lender do when a financed car is totaled and there is no insurance?
Sue the proprietor of the car, since the proprietor was likely required to carry insurance as part of the financing deal.
If the lender writes off the loan can the car still be repossessed?
Yes, a vehicle is a secured debt and the lender can remain a lien holder even when the loan is charged off due to a default..
A “write/charge off” does not invalidate a debt nor does it relieve the borrower of the obligations of the original contract..
And more than that…you can expect that (as required) the lender will now send you a Form 1099-C, and report the amount they charged off as taxable income to you to the IRS. And hence, you will be payingtaxeson it!.
Significant CONCEPT: CHARGE OFF IS AN ACCOUNTING ENTRY BY THE ONE OWED, IT IS NOT FORGIVENESS OF DEBT..
Explanation Charge Offs & Forgiven Debt.
Below is more than everything you ever wished to know, but feel free to ask more or challenge any of my reaction..
Lets limit this to business charging off a debt that is owed to them through some type of transaction. That includes the $ provided by a Cr Card co as a transaction, or the loan made on a car or such..
A charge off (or write off) is the accounting process where a business acknowledges a receivable (an asset) it believes is uncollectable effectively does not exist. It is taking the cost of not collecting that receivable as a charge against current earnings. Hence the companies net current earnings is lower than they would have been and subsequently, the amount of income taxes they pay is also lower. Significant: It does not mean the debt is forgiven, just that they can’t collect it, or some portion of it. (See below). Many have asked why they should still pay because they think the Co gets a beenfit by making a charge off..
They had an enhanced expense, made less money, they pay less taxes. unlike Kramer on Seinfeld pridefully proclaiming its fine with them (they just write it off”…the Post Office/stereo gig), it’s fair to say given a choice the Co would have preferred to have made the less net income by enlargening say, salaries, medical benefits, advertising, fresh machinery, etc. than essentially providing away their assets/earnings to someone else for nothing..
Taking a $100 sale on credit, the company shows the $100 as income on its income statement when the sale is made and, as no cash was received, reflects it by establishing a $100 asset (due from customer) on its balance sheet. If the transaction is ended, as the customer pays the balance sheet cash account is enhanced by the $100, and the due from customer account is decreased ? no income effect (as that was recognized with the original posting)..
So, say a company sold $100 in year 1, reported the income (through the income statement) and paid taxes on it and establishes an asset for the receivable. Then in year Two finds that customer isn?t going to pay, it will have a charge of -$100 in year Two (reducing the balance sheet asset account, with offset to the income statement), effectively recovering the taxes it paid in year 1..
While this seems fair there are, not suprisingly, a number of accounting, especially IRS tax accounting rules, that complicate it and it is not unusual at all for a company to not receive a finish or timely benefit for all of its charge offs. The tax rules for when an asset can be charged off are stricter than accounting). And for there to truly be any benefit, the company must actually be making enough money on a tax basis in all those years. It must have taxable income and a tax it would have had to pay. If it was already losing money, paying little or no tax, losing more doesn’t get it more! But also at the State level where, the taxable income need is even greater, but another tax is frequently encountered. If that $100 also had say $6 sales tax collected and paid over to the State, the state makes recovering that $6 that was in reality never collected, very difficult, near unlikely. (Note that the $6 is normally NOT part of the company’s income or sales but a collection in trust for the State and paid over on behalf of the customer)..
I think one would be hard pressed to call the above a benefit! The one not paying (who still owes and will forever owe the money), actually receives all the benefit, by basically enriching themselves through a theft. (Walking out and agreeing to pay, then not doing so is indeed very similar to simply walking out with out paying)..
However, there is another consideration: What happens if the debt (or some portion) is forgiven?.
Lets commence with a basic tax concept: If you receive something of value (reminisce we?re talking in business, so from someone other than family), you have received a taxable income. (The one providing it rightfully has an expense). For example, recall the Oprah Winfrey thing where the audience got cars and then found out they owed taxes on the value of the cars. In fact, when Oprah stepped up to pay the tax for them, she had to actually pay more than the tax on the car, (called a gross up), as the money she gave them to pay the tax is also taxable..
Arm in forearm with that, and the example above, if you get a loan, it is NOT taxable income. The money was exchanged for the identically valued promise to repay..
So taking the example above, if a buyer receives the $100 merchandise and gives $100 value for it, obviously nothing income taxable to the buyer. But in this case the buyer receives the $100 of value and say makes a deal in year Two that if the $100 promise it gave is forgiven for a payment of $75 sent today (frequently suggested with words like ??because it?s all I have and otherwise you ain’t getting nothing?.?), then the $25 is considered a cancellation of indebtedness. COD income is taxable to the recipient. It isn’t a loan/exchange of value anymore, it’s a bounty of value, and value, as in Oprah is taxable. While no one likes to pay tax, it is the correct outcome. The advantage is the debtor doesn’t owe anything anymore?other than tax on the bounty..
This COD is a very big issue in major corporation financial reorganizations. When these companies financially restructure (Chapter 11 Bankruptcy), and creditors, generally Bondholders, agree to take less than the bond was issued for?and we are talking billions of dollars here frequently, the company has COD income of the amount forgiven.
Can you insure a car that the loan is in someone else’s name?
Insuring a Vehicle in someone else’s name. Yes you can. So long as you also list the holder as an insured. See the related questions below. Other AnswersNo, the insurance needs to be in the same name as the person on the loan.
If a car loan has been approved and very first payment has been made on the loan can the lender switch their mind and repo the car?
If there was any fraudulent information on the credit application, the loan may be in default. Check the loan agreement and the credit application for terms of default/recision.
Can your daughter be on your car insurance if you are not cosigner on her car loan?
Yes: Your spouse/children can be included on your insurance policy regardless of who was/if there was a cosigner on the car.
Can a car loan lender garnish your pension benefits?
No because they are not your parents and they are not supposed to spoon-feed you and pay your outstanding of awaiting bills even if it is your pension.
Can the name on the insurance policy differ from the name on the car loan?
Anyone driving and all owners of the vehicle should be a namedscheduled driver on the Auto Insurance Policy to have propercoverage under your states financial responsibility laws. The terms of your Finance Note if the vehicle is financed will alsorequire that the purchaser be listed as an insured in order to bein compliance with the Finance Note.
If you are in a car accident and the car is totaled does your car loan get paid off through insurance?
Not unless you have the fresh option in insurance of the fresh car replacement. If your car is totaled, you will be paid the Blue Book price for your vehicle. This sum is the amount your vehicle is worth at this time. Any amount over this sum that is still owed to a car loan is still due.
Can you legally loan your car to a friend if it’s insured to you?
You can legally loan your car to a friend, if you own it, but be ready to pay for any damages done to or by your friend, because your insurance won’t and they might cancel your policy. You must inform your insurance carrier if other persons will be driving your car.
If you get a cash loan against your car title can the lender reposses your car?
Of course. They hold the title and can have it put into their name and repo the car to sell it to get the money back that they loaned you.
How does a lender get a judgment against you for a loan when they repossess a car?
You owed more money than the car was worth and they wish to collect the balance.
How much monthly income must you showcase to a car loan lender for a 9000.000 car?
well you must have atleast this much money to but a car (9999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999999 .
Coverage on auto insurance when you have a car loan?
Yes, you should get auto insurance coverage when you have a car loan, and even when you don’t have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..
What can I do if the lender rejects to comeback my car after repossessed because insurance issues?
On April Three, 2009 my car got repossessed, I couldn’t understand why, because my payments are current. When I call, the bank (Third Fifth Bank) they said it was because I had a collapse on my insurance for a duo of months. I went and have all proof of insurance and one of the customer services lady, fix everything and said that car will be able to release in a duo of days. I been attempting to call everyday, seems like the bank denies to come back my car. Also, I been calling this Company to get at least my private property back and nobodies ever comes back my phone call. I am so devastated, this is so un heard off. I am desperate and don’t know what to do. Is exactly 20 days since the bank took my car, for no reason. This car is under my mother name, she signed for me, because of my credit. She is 74 years old and now how I’m going to tell her what happened.
What are some car loan lenders that deal with bad credit?
If you are located in Toronto, Canada, here are few google results for bad credit car loan providers. 1. Auto Credit Financial – https://www.autocreditfinancial.caTwo. Ontario Credit Solutions – https://www.ontariocreditsolutions.comTrio. Whitby Motors – https://www.whitbymotors.comGood luck
Can you get auto insurance under your dad if hes not on the car loan?
Yes. The leinholder (the person who has to pay the loan) and the lender (the person who receives the loan payments) is not related to the person insured to drive the vehicle.
Is liability insurance enough for cars that are purchased by getting a loan?
That all depends on which bank gives you the loan. Most banks require that you carry comprehensive and collision coverage and don’t even care if you have liability. Others want both. Very uncommonly you will get a bank that wont’ mind if you don’t have comprehensive and collision.
If I don’t reaffirm a car loan can the lender take the car back at any time even if I have paid equity into the car after a period of time?
If you don’t reaffirm the debt, then the creditor has the right to repossess the car and sell it at auction to recover the debt owed to them, irregardless of what equity that you’ve paid. If you wished to keep the car, then you should have demanded that your attorney reaffirm the debt with that particular creditor.
Can you default on a car loan when the lender stops your automatic payments?
Assuming they haven’t actually repossessed the car yet, you should contact theminstantlyto find out what’s going on and begin making up the missed payments. If they made an error, they should stop repossession proceedings and liquidate the ding on your credit report (you should very likely also contact the credit bureaus in the meantime to dispute the report). If they HAVE repossessed the car… If the lender stopped processing your automatic payments without notifying you, and you did in fact have the funds available to make the payments had they attempted to process the automatic payments, then you might want to consult an attorney; it sounds like you most likely have a case against the lender. If they did notify you that they would no longer be accepting automatic payments, or if they notified you of a failed attempt which you would need to pay by hand and you didn’t bother to do it, then it’s a lot more obviously your fault instead of theirs and there’s not going to be much you can do about it.
Does a lender have insurance to help write a car off when they can’t find it to repo it?
They might. The liability of the person who has hid the car will be the same.
Gap insurance is from the auto loan or your insurance on the car?
GAP (assured asset protection) auto insurance coverage is one the most necessary, yet least understood insurance products available to vehicle owners. It is generally purchased through the auto dealership or leasing company at the time of the initial purchase or lease. It’s purpose is elementary: If your car is totaled, gap insurance will cover the difference inbetween what your insurance company says your car is worth (actual cash value) and what you still owe on your loan or lease.
If you voluntarily let your car be repossessed by the lender do you still have to pay on the loan?
Yes! It will still be listed on your credit report as a voluntary comeback and you will still be responsible for the cost
Car totaled insurance value car at 16000 and loan amt is 12400 can you use your gap insurance to pay off car loan?
If they gave you 16000 on the car, you would not need gap insurance since your loan amount is 12400.
What if a lender repos your car and sells its for more than the balance due on loan?
You may only owe one payment, and if it’s late, they can legally reposess your car. I would expect they would give you ample chance to catch up on your payment very first. Once your car is repoed, they sell it, generally at auction. The money they make is theirs. You could check your own state laws, but generally there is nothing at all that precludes them from selling the car for more than you owe. On the opposite side of the coin, most repos end up getting sold for less than the debtor owed. Then, they come after you for the balance.
What is the best car insurance India company Is there a loan company that do not require insurance on the car?
The best motor plan coverage India for you will depend entirelyupon your specific requirements related to insurance cover, premiumand a lot more. You need to get into a serious comparison for bestauto comparison for insurance online. No. There is no loan company in India that will not ask you forinsurance on the car.
Where can you get a loan for a car if your credit score is too bad for you to use conventional lenders?
There are many lenders that specialise in loaning money to people with bad credit. You should use a money comparison website in order to compare the deals available and pick what’s best suited for your situaution. Be advised you’ll most likely pay fairly high interest rates.
What are the best loans to get for car insurance?
This depends on what is best for your financial situation. If you have more money at the time of purchase, you can make a fatter down payment and get a loan with lower payments. However, if needed, you can get a larger loan and pay more per payment.
Do car insurance companies check for unpaid car loans?
Absolutely. They also check to see that the vehicle is titled in the name of the person who purchased the insurance
What are legal penalties to sell a car you still have not paid off the loan to the lender?
you could face penaltys and or jail time because the car is not yours until you pay it off in total and there is no lein on it
Can you liquidate auto insurance from a car if you have an outstanding loan on it?
Usually no because the leinholders when to make sure their car will get paid for if their is an accident.
Can lender reposses car or lack of insurance?
Yes, if you don’t have utter coverage insurance the collateral is in jeopardy. In other words if you were to total your car the lender has no collateral.
Where can one find more information about car insurance lenders?
If you are looking to get the best bang for your buck and you want to attempt some local car insurance companies, check your local Yelp listings online. You can find reviews on the local companies and locations.
What is a good place to quotes from car loan lenders?
There are many places where one could find quotes from car loan lenders. One could check online sites such as Bankrate for information regarding quotes from car loan lenders.
Where online can one find comparisons of car loan lenders?
There are a number of places where an individual can find comparisons of car loan lenders online. Some websites you may want to visit include Auto Loan Service Review and Consumer Reports.
How do I get car insurance when I have taken over someone’s car loan?
You need to make sure you have a written contract buying thevehicle and that the finance company or bank has switched the nameon the contract or I would not recommend taking over a car payment.The reason is that the vehicle is not yours in any way or style.It belongs to the other person even if you are making the paymentsit still belongs to them. For this reason, you cannot insure avehicle you do not own. The insurance company cannot pay you if thecar is totaled and they cannot pay the other person because theydon’t have an insurance contract with the company. Sometimes thecompany will make an exception if you have a contract with theseller.