who will be insured for financed car

by Guest » Mon Mar 04, 2013 12:08 pm
Guest

Can I not insure a car in my name, if the lienholder has the title? Or the insurance should have his name as well till the time the loan is paid off?

Total Comments: 2

Posted: Mon Mar 04, 2013 01:49 pm Post Subject:

It should be listed in your name, not the lien holders. The lien holders name is listed on the policy as a lien holder only... not an insured.

Posted: Mon Mar 04, 2013 02:08 pm Post Subject:

The lien holders name is listed on the policy as a lien holder only... not an insured.

The listed lienholder on any property policy, like auto or homeowners, or the landlord in a commercial property policy, is considered an "additional insured".

A lienholder or landlord may require being named as such in a property (fire) policy as a condition of borrowing or occupancy. This allows the lienholder (or landlord) the right to file a claim for damages covered under the policy if the insured is unable or unwilling to do so.

An insured, for example, would be lawfully unable to file a claim in the event of arson that they caused (or conspired with another to commit), but that doesn't prevent the lienholder/landlord from filing a claim for the same arson-related damages that he did not cause or in which he was not a participant/conspirator. It's his property and he has the right to collect on a covered loss.

A homeowner/tenant who is unwilling to file a claim because he doesn't want his insurance premium to increase, as another example, would enable the lienholder/landlord to file the claim. The insurance premium would still go up, if necessary, regardless of who files the claim.

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