Is it ok to cancel or downgrade my insurance after purchase?

VuLe110 · 10-16-2006, 02:36 AM

I have a question that I hope someone can answer. K, well I bought my Titan for 25k from a small used car dealership. I finance 21k. The finance company needed proof of full coverage insurance. I got the insurance but it is costing me $560 a month for the damn thing. I can barely afford it. My car payment is already $380. Does anyone know if I call in and cancel the insurance, or if i downgraded it to only liability, would the finance company care? Will the insurance company notify the finance company? These payments are killing me!

BKW · 10-16-2006, 03:10 AM

Quote:

Originally Posted by VuLe110

I have a question that I hope someone can answer. K, well I bought my Titan for 25k from a small used car dealership. I finance 21k. The finance company needed proof of full coverage insurance. I got the insurance but it is costing me $560 a month for the damn thing. I can barely afford it. My car payment is already $380. Does anyone know if I call in and cancel the insurance, or if i downgraded it to only liability, would the finance company care? Will the insurance company notify the finance company? These payments are killing me!

$560.00 a month? You gotta be kidding! I pay $960.00 a year for full coverage

How old are you...how's your DMV record?

Is the insurance tacked onto your car payment?

AgTitan06 · 10-16-2006, 03:45 AM

Quote:

Originally Posted by VuLe110

I have a question that I hope someone can answer. K, well I bought my Titan for 25k from a small used car dealership. I finance 21k. The finance company needed proof of full coverage insurance. I got the insurance but it is costing me $560 a month for the damn thing. I can barely afford it. My car payment is already $380. Does anyone know if I call in and cancel the insurance, or if i downgraded it to only liability, would the finance company care? Will the insurance company notify the finance company? These payments are killing me!

ummmmm.......what??? I am 22 years old, and i only pay $78 a month through Geico for full-coverage. Are you sure you insurance isn't $560 every six months???

Usually, the finance company will require you to have full coverage on all vehicles that they are financing. Sorry to tell you, but this is something you should have looked out and figured out a LONG time ago...before you bought the truck and insurance. Switch to Geico, you should get a good rate.

RiderBelle · 10-16-2006, 04:12 AM

+1 ^ good post

crashgordon73 · 10-16-2006, 04:18 AM

You could chance it and hope they don't find out about your change. I have heard that if you cancel your insurance or don't have full coverage (when you have a lein) that they will cover you with their insurance which is about twice the cost it would be to keep your current one.

Since you didn't look around before you should start now. Oh and you can cancel any policy at anytime so you can switch. They wil try and tell you that you can't. It's bs.

Keep the thing insured, you may be sorry if you don't.

d0va · 10-16-2006, 06:08 AM

are you financing with a bank or throught the small dealership?

If it is throught the bank you might be able to get away with no insurance for around 2-3months before they tried to take the car away or put you on their own insurance.
if it is throught the dealership you should be care as maybe the insurance would notified the dealership and they will try to take the truck away from you. Small stealerships are dangerous usually used by drug dealers for money laundry.
If I was you I would switch to gaico. and dont try to risk it.

tholmes · 10-16-2006, 06:16 AM

Finance companies require a minimum deductible of $500 for both comprehensive and collision. You are not required to provide more than that. Reason being is you technically do not own the vehicle until you satisfy the lien (loan). In order to protect the finance company from liability since the vehicle is in your possession, they require a low deductuble rate to ensure that any damage sustained to the vehicle can be fixed by you. The average car payment today is well above $500, so they figure if you can afford that for a car payment, you can afford that for a deductible. If you were to wreck the car and have no insurance or a deductible of say $1000-$1500, it is an unfortunate fact that many people don't have the ability to then have repairs made on the vehicle by covering that high deductible or by not having insurance at all. The car becomes worthless to you, you stop making payments and poof, the vehicle gets repoed and the finance company gets stuck with a wrecked car. Now they will come after you for money, but 9 times out of 10, if $1000 is too much, then a $15,000 negative ding to your credit score isn't gonna matter either. In aspects of total loss wreckage, this is where GAP insurance comes in to play, but that is a whole nother story or topic. Finance companies usually check twice a year on your coverage. If you don't have it, they duely make note of said fact and get documents should it ever go to court. They will call and inform you of your lapse. Some higher end financeers will repossess the car since it states in the contract that you sign when you bought the car that you will provide coverage in the amounts of no less than xxxx. Anyways, in short, your insurance is RIDICULOUSLY high,

blown out of the water. Call around and get qoutes for a $500 deduct on both comp. and coll. to save you big bucks. At worst, I don't see any reason you should pay more than $250 a month with a young driving record and a few tickets... unless you have DUI's or DWI's on your record and still haven't sobered up enough to understand why your premiums are so high!

JGM · 10-16-2006, 07:40 AM

Another thing to look out for, I am not sure if aother states do this, but in Maine the law requires the insurance companies to contact the state DMV who in turn come looking for you when you cancel your policy, and hsould the worst happen, you really do not want to be left high and dry, expecially if it involves another person or vehicle.
I would shop around for cheaper insurance, AgTitan06 mentioned Geico, also check progressive, another big name to check with would be State Farm. Also there are things you can do to help bring down the cost of your insurance, like taking a safe drivers course etc. check with insurance companies to see what offers they have to reduce your over all cost of your policy too.

**gadget74** · 10-16-2006, 08:19 AM

Answer: Yes you have to have more than liability when the auto is financed. Check to see what you need. Might not be FULL coverage. Mine is just comp and collision. cost me about $80/month with progressive

**goathead** · 10-16-2006, 12:58 PM

and people wonder why insurance is so freakin' expensive.....

AgTitan06 · 10-16-2006, 01:06 PM

Quote:

Originally Posted by goathead

and people wonder why insurance is so freakin' expensive.....

.......................

Quartz · 10-16-2006, 01:15 PM

If you’re insurance runs $560.00 a month it sounds like you need insurance as much as or worse than anybody. My friend’s son is 21, has totaled three cars in the last two years, and his payments are not $560.00 a month. If you drive a vehicle, you need insurance. If you hit somebody and it’s your fault they will come after you and you could have your wages garnished (sp) for the rest of your life. It is a very costly and time consuming process. Check with some other insurance companies.

nissan_rob · 10-16-2006, 01:20 PM

You drop insurance, the finance compay will throw their own insurance on it. You think you pay a lot now? Wait until they get ahold of you. You entered a legally binding agreement to provide full coverage, time to start shpping insurance, I'm 22, 4 suspended licenses (graduated licensing in Michigan, you get pulled over while you are on your probationary period and they yank your license), and I only pay 134/month, and Michigan is hands down one of the worst states for insurance. You are getting ripped off by your current company!

jljue · 10-16-2006, 03:43 PM

I've been thru too many roadblocks to even think about driving without insurance (MS requires insurance). Now, thinking about that, I just remembered that I need a new inspection sticker for the windshield. Whoops!

Don't chance driving without insurance--too many wackos on the road. If you're insurance is really that high, you either didn't negotiate your coverage (sometimes the comprehensive and liabilities values are jacked up to an extreme number) or you are paying for coverage that you won't need. You can negotiate the deductible to an extent, but you shouldn't do a deductible that is over $1000 unless you can afford it.

**ArmyAviation** · 10-16-2006, 03:58 PM

You sure its not for 6 months? now way anyone pays that much per month for auto insurance. Do you have any DUI/DWI's? or a bad driving record?