Do I need Collision coverage if I have a car loan?

I owe 2500 on my car but I am paying off all but 1000 in the next week...So I will owe just a 1000 on the car. It is worth about 2000. I never drive the car because I bought a new car. Do I still need to carry collision on the car even though I never drive it? If I remove collision will the company who I have the loan with find out?

Do I need Collision coverage if I have a car loan?

Yes, you must carry it until the car loan is paid in full. Technically, your insurance carrier is supposed to report the fact that you dropped the collision coverage to your lien holder, but they don%26#039;t always get around to doing that. It%26#039;s like a 50/50 shot. However, if you do get caught, it%26#039;s a big old mess.

Do I need Collision coverage if I have a car loan?

Auto Loan Guide: http://autoloanguide.automobil... Report It

Do I need Collision coverage if I have a car loan?

If you never drive the car, then it doesn%26#039;t make sense to keep the collision portion of your insurance, unless having it is part of the agreement between you and the finance company.

Do I need Collision coverage if I have a car loan?

If the place you have the loan through has your title, then yes - they almost always require you to have collision.

If you have the title, then you can get away with basic coverage.

They probably wouldn%26#039;t know if you took collision off - but if you went out and totalled it, you would still have to pay it off before you could get the title back (so you wouldn%26#039;t even be able to sell it for scrap).

Do I need Collision coverage if I have a car loan?

until you pay the loan off in full, the finance company requires you to carry comprehensive AND collision, they really don%26#039;t care if you%26#039;re not driving the car.

Do I need Collision coverage if I have a car loan?

If your loan company or bank requires it, then yes... You do need to carry collision coverage until the loan is completely paid off. It%26#039;s part of the contract you signed in order to get the car loan in the first place.

If you cancel your insurance coverage, the insurance company will notify the loan company, and the loan company has the right to buy their own insurance and charge you for it.

Do I need Collision coverage if I have a car loan?

If you still owe money I don%26#039;t believe you can change it. Insurance companies always ask if you owe or own.

Do I need Collision coverage if I have a car loan?

The finance company, bank or credit union that holds the loan on the vehicle will certainly be notified by the insurance company if you make changes in your insurance coverage. That%26#039;s usually by state law. And usually, a car loan requires full coverage. However, sometimes a credit union can be persuaded to not require anything more than liability on a loan of $1,000 or less. Banks are not as agreeable, but talking to them would be worth it. Finance companies will not yield on this point, as they want their remaining investment fully covered.

Do I need Collision coverage if I have a car loan?

Yes, it should be specified in your contract. Once the loan is paid off, you can drop the coverage down to liability only.

Do I need Collision coverage if I have a car loan?

well:

1 - when you got the car and there was a requirement that you have collision coverage - what usually happens is that the leinholder is added as an %26quot;additional insured%26quot; on your policy which means %26quot;they are going to get theirs%26quot;. If you cancel the policy - a letter will go out to all insureds. They will find out when they get the letter.

2 - If you no longer have a lein on your car and you want to get a clear title - you need to get a lein release letter from your leinholder.

However

3- if the DMV says you no longer have a leinholder - go down there and request a copy of your title. When they give it to you - if there is no lein holder listed? You have a clear title.

Sounds kinda fishy that they say you have a clear title but you think you still owe on it. I would call the leinholder and get a statement of account.

Goodluck!

~jifr