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Asked: Mar 11, 2008 - 03:15 PM
Status: Closed
gman24
What is the required insurance policy for bank owned car?
what is a required insurance policy for bank owned car?
In Car Insurance > Buying Insurance In Buying & Selling > Car Leasing > Gap Insurance3 answers - 600 days ago
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lilengineerboy
Date: Mar 11, 2008 Time: 06:33 PM
It varies by bank and by state but typically the lien holder requires full coverage on the vehicle. Some may require gap insurance which is the difference between the vehicle's value and what you actually owe.
canddmeyer
Date: Mar 12, 2008 Time: 04:25 AM
So the lienholder can recover the outstanding balance on the amount you owe. The car is your collateral against the loan, but if or someone totals it, the insurance is the only way for the lienholder to recover any unpaid balance.
joel0622
Date: Mar 17, 2008 Time: 08:57 AM
If there is a lien on the car full coverage is mandatory. If you let the insurance lapse the bank will put what is called "Force Placed Insurance" on it. It is insurance that covers the car only and the price is added to your loan. it is twice as expensive for half the coverage. BTW a bank can not force you to buy gap insurance, it is voluntary only.
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