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Every once in a while, we get involved in a case with a person who had their finance company purchase car insurance for them. Usually, it’s a high loan risk or person who didn’t come forward with their own insurance and the bill arrived for the insurance that the loan now also covers. It’s usually very expensive and it called insurance.

But, an accident happens and guess what? It only covers the car. Actually, it hopefully at least covers 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. Seems to me the law requires basic coverages with any insurance policy, so how do these car coverages get around that? Looks like poor governmental oversight. When you look at how expensive the coverage is, the person could have bought solid protection for everything.

These policies are bad . Make sure you don’t have one.

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