We sometimes get involved in a case with a person who had their finance company purchase car insurance for them. Usually, it’s a high risk driver or a person who didn’t come forward with their own insurance after the purchase. A bill will arrive for the insurance that the loan now includes. It’s usually very expensive and it may look like car insurance.
An accident happens and guess what? It only covers the car. It might cover the whole loan. It has no other protection whether it be liability, no fault , UM or UIM. The person for all intents and purposes has been paying for nothing in personal protection.
How this coverage is legal in Minnesota is still beyond me. The law requires basic coverages with any vehicle insurance policy, so how do these loan companies get around the law? Looks like poor governmental oversight. When you look at how expensive the coverage is, the person could have bought good protection for everything.
These policies are bad . Make sure you don’t have one.
