What Happens If My Auto Insurance is Canceled or Lapses?
Seeking Alpha Analyst Since 2010
What happens if my car insurance is canceled or lapses?
If the bank/lienholder receives notification that you are not carrying insurance on your automobile, they will procure a Force Place Auto Insurance Policy. The premium will be added to your monthly principle & interest payment.
What are the Consequences of Force Placed Auto Insurance?There are two things that you should be aware of regarding the Force Placed Auto Insurance that the bank/lienholder will force your to have:
- Force Placed Auto Insurance is extremely expensive relative to any other car insurance policies.
- The Force Placed Auto Insurance Policy may not include specific state required liability coverage. In this scenario, unless you purchase liability insurance in addition to the Force Placed Auto Insurance that the bank/lienholder forces you to have, you will be driving illegally.
In order to avoid being overcharged and undercovered, avoid Force Placed Auto Insurance (Force Placed Car Insurance) at all costs. If your current auto insurance policy is in danger of lapsing or being canceled, find a new auto insurance policy immediately.
Do not allow the bank or lienholder to place you on Force Placed Auto Insurance!
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.