Due to the high cost of many vehicles, many consumers choose to finance or lease their cars and trucks. This is not an issue when buying Car Insurance. However, there are a few additional things for consumers to do and to think about when there is an outstanding auto loan or lease on the vehicle. First of all, almost all lenders want borrowers to maintain full coverage on their financed vehicles in case of loss. Secondly, consumers need to make sure that the insurance company sends the policy information to the lender. Consumers who do both of these things can avoid any problems getting coverage on their financed and leased vehicles.
First of all, consumers need to make sure they meet the insurance requirements of their auto loans or auto leases. In the original auto loan or lease contract, there is a section for minimum insurance requirements. In general, lenders require borrowers to maintain full coverage including collision and comprehensive coverage on Car Insurance. In some instances, lenders specify a maximum deductible as well. Consumers should review their loan or lease paperwork to make sure that they have sufficient coverage to meet the lender’s requirements.
Secondly it is necessary for consumers to make sure that the lender receives the policy information from the insurance company. In particular, most lenders specify a specific address where policy information should be sent. This is usually indicated in the loan paperwork. If the loan paperwork is no longer available, contact the lender to find out the address to send insurance information. If the lender does not receive proof of insurance, the lender may choose to buy a much more expensive substitute policy that will protect the lender instead of the borrower. The borrower will have to pay for the replacement coverage. That is why it is very important for consumers with auto loans and auto leases to make sure that their financial institutions receive insurance information.
The folks at Coast Auto Insurance Services Inc can help customers with making sure that their lenders receive policy information and that the policy meets the lender’s minimum requirements. It only takes a few minutes for insurers to update the policy so that the lender is included. Connect on Facebook!
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