Can my vehicle be taken by the lender if it is now uninsured?

Question

Live in michigan. Truck has been parked and not driven for 3 months and will not be driven until I am able to restore insurance

Answer 1

If you can not provide insurance the lien holder will provide it for you and probably not at the price you want.  I recommend going and getting the min, insurance required for Mich. before the lien holder finds out.  You will have to get full coverage since you do not own the title yet.

Answer 2

If it is a lease vehicle then they can take it or put insurance on it or both, if it is just  financed then they will get your insurance for you and charge you for it and they do not shop around the best rate. If it has sat for three months then they know and it is  a matter of days

Answer 3

As long as u owe on the truck and are delinquent, then it can been taken.

Answer 4

LT nailed it.  they won't repossess, you'll just pay out the *** for a policy that only covers their interest.

Answer 5

I think it depends on if the lender knows it's uninsured and what their policies are. I let mine lapse and they just tacked on an extra amount to my payment to provide insurance to cover if the vehicle was damaged-but not liability or medical. I would be personally responsible for that. They just wanted to cover their investment. Maybe you could call a different branch of your lender and ask anonomously.

Answer 6

In Florida, two things could happen: The insurance company notifies the DMV of no insurance coverage and you may possibly lose your license; the lender has no proof that you are not driving the vehicle and could be repossessed.  When I changed insurance companies, I received notice from the DMV for me to provide proof of insurance, which I did.  They verified it, thanked me for cooperating, and I have heard nothing more. Case closed.

Answer 7

Most lenders require insurance and if you don't insure it they will for you. The problem is their insurance will be 2 to 3 times as much as what your own would be. They then will charge you for the insurance. Best to get insurance before this happens.

Answer 8

I sell insurance in the State of Michigan. By law, if your vehicle is registered it must be insured, however if the vehicle has a lien on it, by contract you must have insurance on the vehicle including Liability, comprehensive and collision coverages. The lender can by contract of law enforce a policy on the vehicle that will cost you probably 25% to 45% more than a regular policy or if their investment is not insured they can take the vehicle back for breach of contract. By the way, when you call for insurance quotes they will ask you if you currently have insurance. Since you have a lapse of coverage, they will charge you more. It depends on the insurance company. Hope this helps.