by josiecurioso » Thu Jul 09, 2009 09:02 pm
My son's car was used as a collateral on my loan in October. He did not know that he was no longer covered by an umbrella car insurance with his partner during that time. So practically the car wasn't insured since October. The lender got a forced insurance last April for the car. The insurance covered the months of October to April and I paid the premiums for those months although nothing bad happened to the car . Is it legal to make me pay for those back insurance?
Posted: Fri Jul 10, 2009 02:11 am Post Subject:
Absolutely, and here's why. The lender required that you maintain vehicle insurance and because there wasn't any insurance...they purchased a policy on your / your son's behalf.
The whole idea behind insurance is to manage risk. If insurance companies refunded everyone's premiums if they didn't have any claims, they would be broke and it would not be a business!
Posted: Fri Jul 10, 2009 05:34 am Post Subject:
Yes, yes, and yes... and be thankful someone help you obey the law by placing insurance on the vehicle! Your complaining because there was no accident? If there had been, would you be here complaining about that?
Posted: Fri Jul 10, 2009 09:38 am Post Subject:
My son's car was used as a collateral on my loan in October. He did not know that he was no longer covered by an umbrella car insurance with his partner during that time.
Was the car actually listed with your son's partner? Is your son the owner of the vehicle or he is only listed in the policy as the primary driver?
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