can the finacial credit union take an insurance policy over my vehicule with no concent?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 10, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Insurance Question from Hainesville, IL

Asked on 07/10/2012

can the finacial credit union take an insurance policy over my vehicule with no concent? I'm paying my car and the credit union took an insurance back on 2007 because they say did not receive proff of insurance. Unfortunatelly I cannot proof I had insurance back on 2007 as I changed bank account an have no records of payments. It is legal for this credit union to take a policy in my name with no concent? also the price is 4,114.00 when a normal full coverage policy cost around 1,400.00 is this legal? what can I do?

Answer given on July 11, 2012

If you have a loan on your car, as a part of the loan agreement you are required to have insurance on the car for physical damage and evidence of the insurance is to be sent to your lender. In addition, they are to be named on the policy as a loss payee so that any claim for damage to the car will be subject to their approval of repairs.If you did not have insurance on the car then the lender does have the right to place “forced” insurance on the car. This protects only the lender and does not provide for any liability coverage. It only protects the car if it is damaged due to an accident or other covered loss. In addition, the cost of the forced insurance is passed along to you since youare in violation of the terms of the loan.If you have insurance at the time the lender placed hte insurance, thenyou need to provide proof of the insurance to them to get them to remove the charges. You should have a record of the insurance company that carried the insurance. You can contact them for a copy of the old policy. You can then send a copy to the lender. If you don’t remember who the insurance was with, then you will have to pay the lender for the insurance they put in force on the car.I’m sure the lnder wrote and/or call you about the insurance before they placed their own insurance. You should have responded to them immediately when you were notified of the forced insurance.

IMPORTANT NOTICE: These answers are for general information purposes only and are provided by the person answering and AS IS. It has not necessarily been reviewed by the management staff of nor is it binding any insurance agent, broker, or other insurance professional or any attorney or insurance company. Insurance laws, regulations and practices vary from state to state and insurance policies and practices differ from company to company, by type of policy, by state and locality and by type of insurance. Tiny variations in the facts, policy language or a detail not set forth in a question often can change the outcome or a professional's conclusion. Although has confirmed that the answer(s) was/were provided for the account of an experienced insurance professional, that professional may not be licensed in the state referred to in the question, and may not be experienced or up to date in the subject area. Unlike the answers provided here, upon which you should NOT rely, for personal advice you can rely upon we suggest you consult a licensed insurance professional in your area or retain a licensed attorney listed on to represent you.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption