Is it legal for a finance company to add singal interest insurance to the end of your car payment?

Question

my finance company add singal interest insurance to the back of my car note giving me ten more extra note is that legal

Answer 1

Read your finance agreement to be sure!  Likely, yes, you agreed to it up front.

Answer 2

You betcha!  And it mostly profit to the finance company to boot.  As part of the finance agreement, you are supposed to provide the insurance on the car.   If you do not provide the finance company with proof of insurance, the finance company takes a policy out for you and charges you for it.  You signed the paperwork that explained this (but did not read it.)  You can still get your own insurance and provide proof the the finance company and they will cancel their coverage (but you won't get any refunds).

Answer 3

If you allowed your car insurance to expire then it is legal and the finance company has every right to do it. And it is usually very expensive. If you can prove your insurance did not lapse, then you can require the finance company to remove the single interest cost.