Insurance rip

[Supa Dexta]

Anyone know the details on insurance if you have a loan for a car, do you HAVE to carry full coverage on your insurance? The bank made no mention to me that I had to, it doesn't say anything about it in the paper work I've got from them. But the insurance company quoted me, I got everything set up to go down and pay for it, but the last thing he throws in is, I HAVE to go with full coverage if I owe money on the car.. and thats $4300 a yr!:eek for full coverage: Also the car dealership I got it from (I was told shouldn't have let me off the lot without proof of insurance, but they just took my old plate and slapped it on and I was on my way) but thats not really important right now...

Now if the bank made no mention of it (and seems to not care) why would the insurance company? Also do they check for leins on the vin before they insure?

If I have a line of credit and payed for the car that way, is that totally seperate of the car itself and should I be able to get what ever the hell insurance I want?

I had it all planed out to pay it off by next winter, but I can't do it with 4300/yr insurance.. :banghead:

:)

[vietdood]

if you lease/finance a car you need full coverage. it's like getting a mortgage for your house. you're required to get insurance for that too. it's to protect the bank and you if anything should happen.

[braden883314]

Actully it can depend, I have a loan out on my car, because of the year and importing it from japan and such, they labled it a un-secure loan, which in turn made the interest higher, but they said i could do w/e i wanted with the money, i didnt even have to buy a car, lol i could blown it all at the strippers, and there is no insureance on that. Therefor i dont have to have full coverage, but i would alway suggest fire and theft, cuz they r cheap, depending on where u live. But it all depends on the kind of loan u r gettin.


Braden

[danno]

yeah i believe on a small loan say under 10000 the bank does not require insurance. on a brand new car if you are financing, leaseing or such you will be required to have full insurance. just think about crashing a 5000 car, not the end of the world your in the hole 5g's, but if you crashed your 20g car you would be paying that off plus paying for a new vechicle

[Supa Dexta]

the dah tails..

10k loan on a little over 12k car (i had cash for the rest) They are using the car as collateral on the loan, so I prob will have to have full coverage and this sux monkey nuts.. Mostly just because I plan on having the car paid off this fall (it's a 4 yr loan but I think I can do it in under a yr) therefore I would be out of the loan in a few months, but had to pay for full insurance for the whole yr.. And cancelling it when i do have it payed off and dropping down the coverage would likely cost more than it's worth....

it also passed my mind, maybe I could get another small loan to pay off the rest of the car loan, and say had to pay an extra 1k in interest (on top of what I would have been paying on the original loan..) But I would save over 2k on the insurance.. In that plan I would be saving money, but in the back of my head, getting one loan to pay off another seems like a bad idea any way you look at it.. :nut:

[DannyO]

Thats suchs man, but I think it depends on the bank, I recently went for a pre-approved car loan and got approved, I asked if I had to have full coverage on the car or not, and she said no, they will want to know what car it is I got, and they won't give me the money until I prove to them I am getting a car with the money (by getting insurance and registered BEFORE buying the car WTF) then I fax them the details and they deposit the money, I'm with TD and went for a 15G loan, so I got it for a car and have been told that I do not need full coverage, I asked as I know that most banks want you to have it, but tomorrow morning I will be phoning the bank again to tell them whats happenening and will ask again about having full coverage.

[Supa Dexta]

Hey good to know, I guess I'll have to call the bank (royal) to check with them.. I didn't yet, just because I thought, they'd for sure say yes I need it (which I didn't want to hear..haha)

As for buying a car, thats what I went thru too, but not so strict... I went in, got pre approved, and then the hunt was on, but with working and what not it was atleast a few weeks before I got back to her.. I originally found an 00' civic... called the bank, gave her the VIN she was going to check out the vin and get the papers ready for me, but that deal fell thru and I had to call back and cancel with the bank on that one (the motor went out of the civic the day before I was supposed to pick it up, thank god) So then I searched for another week or so, found a car at village honda, went and put 500 down on it, called the bank up the next morning, gave her the vin and went in after work, she cut me a bank draft and I went to the dealership.. handed that to them and went on my way.. Never talked to the bank or dealership again (there was a couple of mesages on my machine from village honda, just cheking in, hoping all was going good with the new car, so :thumbsup: to them for checking in after the sale)

Now since I had my other old car I've been just driving it and the new one has just been sitting.. But now I'm looking to get it on the go....

:)

[DannyO]

Nice man good luck with that :thumbsup: .

Only 2 things can stop me from getting the car I'm going for, either failing mechanical (unlikely) or the bank saying I need full coverage at the last minute, can't see that happening though.

[Supa Dexta]

Well it's a shitty thing to throw on a guy..

"oh, yeah your insurance is gonna be 2100 more than you thought, good luck with that":rolleyes:

yeah man, gotta be careful, that 00' civic I put money on, great guy by the way, but we took the car out for a test drive, all went well, car was in great shape, treated well.. But for some reaon he went to the grocery store that night and the timing belt went @96k!... honda doesn't even reccomend timing belts till 100k.. so I felt pretty bad for the seller.. but happy for myself that it didn't happen a day or 2 after I got it home... he gave my money back and I went on lookign for another car...

:)

[Supa Dexta]

I was just thinking about what you said dannyO..

You have to get insurance and registration first, beofre the bank will give you money.. but woudn't a seller be a bit nervous to sign over the registration, without getting any money for it? Seems like an odd way to go about things, but :thumbsup: for not HAVING to have full coverage...

:)

[DannyO]

Yea it is a pain in the ass the process they want you to take to get the car, but the guy I'm buying it off (core_upt) knows about it and hes cool with it, seems like a good guy, he said he basically won't be driving it anyway and it will just stay at his house till things are sorted and I get the money.

That sucks about the civic, thats one thing that worries me about these engines, timing belt goes and poof so does the engine, I must ask the guy when the timing belt was changed last, hopefully it wasn't long ago as I'm already tight on cash.

[googe]

read your agreement with your lender. if it doesnt say in there, tell your insurance company you verified that its not required. if they wont listen, switch insurance companies.

[BokCh0y]

i heard if you owe money on the car then you have to have full coverage - security for the bank in case you write it off.

look at it this way, you buy the car, get plpd for insurance. write of the car and decide NOT to pay for it anymore. bank goes after the car for repo. takes car but car is in pieces......how are they gonna recover the money from the car?

[DannyO]

Well for me so far everything is good, I got liability on my future car now, the insurance company asked how I was getting the money, and I told them straight up my situation, that I need insurance as proof to get the loan, and so now I got it all, I'll just fax the details tomorrow to the bank and should have the money deposited same day or next day, I think all this crap comes down to your bank and insurance company.