How many times has your Bank checked your car insurance?

Question

Im looking to get another vehicle, and the full coverage insurance is just too high. I don't want to take collision and comprehensive becuase the cost is too high, but comprehensive alone is relatively affordable. My question is, will Capital One car finance phone and check my insurance to see if I have full coverage-if so how often do they do this.... and what happens if they find that I only have comprehensive? Will they reposses, has someone had this happen to them be it Captial One or any other lender?

Answer 1

When you buy the car you will have to take out full coverage or the dealership wont let you take the car. if you do this and then drop the collision, your finance company will be notified by your insurance company, as they send out any changes done to you AND the leinholder. once the leinholder finds out, they will most likely send you a letter telling you to comply with putting collision on the auto and if you dont they will force place the coverage for you at a VERY expensive rate. if you cant afford it, just dont buy the car. if you buy it and dont have collision and wreck the car, you will still be liable to pay the full amount of the loan, so why would you want to place yourself in that situatuion?

http://www.fincar.com.au