can forced insurance by a lender be cosidered prior insuranc

by p_r_hollister » Wed Oct 14, 2009 08:10 pm

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Total Comments: 1

Posted: Fri Oct 16, 2009 07:25 pm Post Subject:

In all the years I wrote insurance, no company would have accepted forced insurance as prior insurance coverage for a discount.

The reasoning behind the discount is to show the insured is financially responsible and carries the insurance and pays his premiums. Insurance rates do have a "morale" factor built in as typically, people that are responsible are less likely to file false and/or exagerrated claims.

Forced placed insurance is insurance placed by the lienholder because the vehicle owner was not responsible and did not comply with the terms of the car loan and carry the required insurance.

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