How to handle your insurance if your car is repossessed.
If your car has been repossessed, you may be wondering what to do with your car insurance. After all, you’re not using the vehicle anymore. But before you cancel coverage, here is what you should know.
Don’t cancel straight away
If you feel your car was unfairly repossessed or wrongfully repossessed, and you have legal recourse or the financial means to get the vehicle back, then do not cancel your car insurance immediately. You don’t want to cancel coverage because the vehicle could be damaged during repossession. Although car insurance will not cover your car loan, it will pay for damage done to your vehicle by the repossessing company.
Maintain basic liability coverage
If your car has been repossessed by the lender, then it typically means that you missed a car payment. It’s in your best interest to continue maintaining car insurance coverage until the car is sold by the lender. If you don’t, the lender could impose their own auto insurance coverage on the car, resulting in you paying a higher premium. Ideally, you will keep your own insurance coverage on your vehicle until it’s been sold.
Have more questions about car coverage? For the right car insurance for your needs, contact the experts at Bell Black Insurance. We serve all insurance needs for those in Idaho Falls, Island Park, Driggs, Victor, Swan Valley, Ashton, and the neighboring communities in Idaho, as well as Jackson and Star Valley in Wyoming.