What happens when you have "forced placed coverage" on your vehicle and get into a wreck? Do you call the bank to let them know? and What is the cost to you?
Total Comments: 3
Posted: Sat Jun 12, 2010 12:03 pm Post Subject:
First off, bad move...forced coverage costs about 4 to 10 times as much, and typcially ONLY covers the vehicle for collision and comp! Which leaves you wide open without liability coverage. Yes, call the bank if they are the ones with coverage on the vehicle...
Posted: Tue Jun 15, 2010 07:41 pm Post Subject:
Forced placed insurance is coverage a lender will place on the vehicle at your expense you are in violation of your loan agreement and aren’t carrying the required physical damage coverage on your car. The coverage only protects the bank’s interest in the vehicle. In other words, if you total the vehicle, it only pays the loan off. If your car is worth more than the loan, you are out of luck. You just lose that money. Based on your question, it appears you may have been involved in an accident. I think it is safe to assume your loan papers require you notify the bank if their collateral (your automobile) sustains any damage.
Posted: Tue Jun 15, 2010 07:43 pm Post Subject:
The bank will add the premium cost of the forced placed insurance onto your loan amount. I would highly recommend calling an insurance agent and getting a quote to cover the vehicle yourself, as in many cases, my insured’s were able to get better coverage for less cost.
Posted: Sat Jun 12, 2010 12:03 pm Post Subject:
First off, bad move...forced coverage costs about 4 to 10 times as much, and typcially ONLY covers the vehicle for collision and comp! Which leaves you wide open without liability coverage. Yes, call the bank if they are the ones with coverage on the vehicle...
Posted: Tue Jun 15, 2010 07:41 pm Post Subject:
Forced placed insurance is coverage a lender will place on the vehicle at your expense you are in violation of your loan agreement and aren’t carrying the required physical damage coverage on your car. The coverage only protects the bank’s interest in the vehicle. In other words, if you total the vehicle, it only pays the loan off. If your car is worth more than the loan, you are out of luck. You just lose that money. Based on your question, it appears you may have been involved in an accident. I think it is safe to assume your loan papers require you notify the bank if their collateral (your automobile) sustains any damage.
Posted: Tue Jun 15, 2010 07:43 pm Post Subject:
The bank will add the premium cost of the forced placed insurance onto your loan amount. I would highly recommend calling an insurance agent and getting a quote to cover the vehicle yourself, as in many cases, my insured’s were able to get better coverage for less cost.
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