by mledesma78 » Tue Feb 02, 2010 03:18 am
my boyfriend had his car repossed but came up with the total amount there are asking to get it back..but then today he said he talked to them and they told him he needs to get lien holder insurance?,,ive never heard of that and told him to ask his insurance company and see if they have heard of that? has anybody ever heard of that before?
Posted: Tue Feb 02, 2010 03:41 am Post Subject:
I doubt this is correct. I'm betting he needs to have comprehensive and collision coverage in order to protect the lien holders interest in the vehicle. He should have this all along.
Posted: Tue Feb 02, 2010 12:02 pm Post Subject: Lien holders insurance
If you lease a new vehicle you must add the lien holder in your policy so that the lien holder is covered in case you are unable to repay your loan amount. The insurance company would then pay the difference between what you owe on the car and the value of your car. You can add a lien holder in the following ways:
1. Gathering information: Get the lien holder"s account number and fax number.
2. Contact your Carrier: You can contact through your agent or customer care department. Let them know that waish to add your lien holder in your policy and discuss the coverage.
3. Provide information to the carrier: Submit the information of the lien holder to the carrier. Once that is complete, they''ll mail an acknowledgment to the lien holder.
4. Contact the lien holder: Let the lien holder know that the endorsement have been processed.
Posted: Tue Feb 02, 2010 10:00 pm Post Subject:
Veronica said:
If you lease a new vehicle you must add the lien holder in your policy so that the lien holder is covered in case you are unable to repay your loan amount. The insurance company would then pay the difference between what you owe on the car and the value of your car.
Nope. Lienholder protection protects the financial interest a creditor has in the financed vehicle in terms of physical damage to the car (collision and other than collision losses). Lienholders normally require that a borrower have physical damage coverage on a car, naming the creditor as a "loss payee" until the loan is paid off and the title goes to the titled vehicle owner of record. It has nothing to do with the borrower not making his loan payments.
If you're thinking about "gap" insurance, this is yet another thing. Gap insurance protects the borrower in the event of a total loss and the ACV of the loss isn't sufficient to settle the outstanding loan on the car. This is normally taken out through the insurance carrier and is typically available only for vehicles that are new or just a year or two old.
InsTeacher 8)
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