I got my motorcycle stolen and only had liability insurance.

Question

I am still making finance pmts, but just came into a lump some of money. Would it be possible to offer the finance company a settlement since the load is basically unsecured? I owe 8k and would be willing to pay 4k. I would threaten to stop paying (I wouldn't actually stop) since the debt is unsecured and they have nothing to repo. Any better ideas?

Answer 1

You can give it a try I guess. I have no idea why you would still make payments on the principal and interest when you have a chunk of money to pay it off. If your loan is 8K with principal+interest, you may get away with only paying the principal and letting the finance company waive the interest.

I'm impressed that you were honest enough to just keep making the payments. A less honest person might have reported to the police that the bike had been returned, got insurance on it, and then filed a claim a few months later. It's a lot like the scam of riding without insurance and only getting in put on after you wreck it. A lot of times it works, but it's the wrong thing to do.

I know a few guys I ride with that made the mistake of buying a bike they couldn't afford. Payments on a sportbike aren't high, but the insurance is a killer for young riders. My friend was quoted $2,400 per year for his GSXR750 and then told that even then, his application might not go through because of his driving record.

Good luck.

That was a really crappy lesson to learn.  

Answer 2

you owe the money...pay it..now you know why you do  get fully insured..i thought you had to be insured to secure a loan

Answer 3

Bad deal, sorry to hear that. Some finance companies definitely allow this. Be honest and tell them what happened.

Answer 4

You could offer, but I doubt they would go for it.  You are right, they can't take your bike, but they can take you to court and put a judgment against you and your credit will go down bad.  You should NOT make a lump sum payment, keep the money in savings.  You SHOULD continue to make payments on it.

You SHOULD always have comprehensive insurance on items of value which you are financing to avoid this situation in the future.

Answer 5

Your kidding right?

Its not their fault that you didnt get coverage on the vehicle- why should they suffer?  You signed a contract with them saying  youd pay the loan in full.

You really think just b/c they cant repo your vehicle that they have no way to hold you accountable? oh man, your in for a surprise.

How about a lifetime of bad credit, garnished wages, and a judgement against you?

People continue to amaze me with how slimy they are.

Answer 6

The answers vary by person.It would be a good idea to hear several of them and see the differences.Here is a good one.http://insurance.free-onlinetip.info/ins...

Answer 7

Offer them $4,000, and they will happily accept it as a DOWN-PAYMENT on the balance you owe, and since you were in violation of the requirements laid out by pretty much every loan company in the world, they will then tell you how much interest you have saved, by early payment, and set up a schedule for you to pay off the rest of your obligation.

What possesses a person to carry a loan on something, and then not insure it?

Answer 8

>>  I owe 8k and would be willing to pay 4k. I would threaten to stop paying (I wouldn't actually stop) since the debt is unsecured and they have nothing to repo. Any better ideas?

It might work.  But don't hold your breath.

Also makes sure part of the deal is that the insurance company does NOT put in any negative statements in your credit report - AND that you get a letter stating complete payment in full - so you can always prove it later.

Good Luck...

Answer 9

do it, offer them 4k worse they can do is say no.  Be sure to get the name of the person your dealing with and where his/her office is, if they deny your offer KILL THEM!