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Veronica Said:

Can my auto loan company charge me for not having insurance for a month 3 months after it happened?

We Answered:

I'd fight this. If you didn't have any losses to your vehicle during the period they are trying to charge you for, then what's their concern? I understand per your contract you are required to carry insurance coverage on your vehicle, but the only thing they need to be concerned about is if you currently have active coverage. If you're not carrying coverage right now, then they have the right to charge you for placing their own coverage on your vehicle.

It sounds like they are just trying to extract extra money out of your pocket for a lapse in coverage in the past.

Kristen Said:

Does an insurance company pay off a car loan if a new vehicle catches fire?

We Answered:

they won't pay off the load, they will give you the amount that the car is valued at which could be less than the loan amount.

Hilda Said:

If your car is totaled, will the insurance company pay off the loan?

We Answered:

Your rates only go up if the accident was your fault. And, that also depends on what state your in.

The insurance company will pay off your loan but if you overpaid for your car you will be responsible for the difference. The insurance company will only pay the fair market value for your car.

If you have GAP insurance then what the insurance company does not pay off they will pay. If you have GAP put in a claim with them too.

Beth Said:

Is it ok for a loan company to charge a "insurance fee" if you do not have any collateral?

We Answered:

Yes because otherwise they don't have an asset to back the loan with, so if you default they get nothing. This way, at least they get the insurance money that you paid them.

Lydia Said:

Is there an insurance company in california where I can get GAP insurance for an automobile loan?

We Answered:

a true "gap" insurance should be obtained from the finance company for your vehicle, but some companies offer a similar coverage that may cover over a vehicle's actual cash value in the event of a total loss.