can a creditor put insurance on my financed car and roll this into my loan?

Yes, this is called "force placement" coverage, and you agreed to it, up front, when you signed your loan documents.

Forced placement coverage costs roughly ten times as much as if you bought your own coverage. Worse, it will never, EVER pay you, and it won't pay to fix your car, AND, it won't pay for any damages you do to the other guy if you cause the accident.

The last thing you need to know about it, is when you mail your "payment" in for your car, that money ALL goes towards the forced placement insurance FIRST. If you don't mail in enough to cover BOTH the forced placement AND your car payment, each month, your loan goes into default and you will have the car repossessed.

**No, the second you get your OWN insurance, you have your new insurance send a copy of the policy - or a binder - to the lender, and they must REMOVE the forced placement coverage from your loan, effective the date of coverage on your policy. So if you were uninsured from March 1st to May 1st, and the lender JUST caught it, and you buy a policy today, May 28th, they can't charge you for insurance from May 28th forward. But they STILL can charge you from March 1st through May 27th, and you'll have to PAY that extra amount, if you don't want your car repossessed.**

Read your agreement...yes they can, and it usually covers ONLY them, not you.

short answer: specific, you are able to spend it the way you choose. long answer: Whoa, there, Hoss! you're getting into some in all probability shaky floor! Is the motor vehicle paid off, or do you nevertheless owe money to a lender? The lender will choose the motor vehicle positioned back to it particularly is unique project as a manner to guard their investment. If something happens and that they might desire to repossess the motor vehicle, they won't have the skill to sell it for it particularly is "blue e book" fee as a manner to pay off the own loan. In that eventuality, you would be caught making money on a motor vehicle you now not have. If the lender learns that your motor vehicle replaced into broken, and your coverage corporation paid you, and you probably did not make the upkeep, it particularly is available that the lender will invoice you for the fee of the upkeep that weren't performed. regardless of regardless of if the motor vehicle is paid for, or not, what happens in case you get in yet another twist of destiny and injury that area of the motor vehicle back? The coverage corporation expects which you had the upkeep performed (from this contemporary twist of destiny) and that they shrink you yet another examine to repair the motor vehicle's injury (the wear you probably did not have fastened). it is coverage fraud. human beings flow to reformatory on a daily basis for coverage fraud. Their coverage regulations are cancelled and that they are in a position to't get coverage from the different corporation. Do you particularly must be in that place? ultimately, we come to the aesthetics of the element. in case you have not have been given the wear fastened, you will see it on a daily basis and be unhappy with your motor vehicle. it will trojan horse you to the element the place you the two sell the motor vehicle (at a discounted fee as a results of wreck) or you restore it your self "out of pocket". remember, that the money you get right this moment won't restore your motor vehicle the next day. expenditures for areas and confusing artwork develop on a daily basis. so as that $1900 restore, right this moment, will fee your $2900 the next day. Make experience? My advice? Get the motor vehicle fastened and decrease the deductible to $500. It won't upload that plenty on your expenditures, and contained sooner or later, it incredibly is going to be easier on your wallet to pay for upkeep.

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If you finance a car and do not put insurance on it (or do not keep the insurance in force), then the creditor can put insurance on the financed car and roll this into the loan. If you later put your own insurance on it without telling them, then you keep paying. If you provide them with sufficient documentation to prove that you put your own insurance on it and kept that insurance, then they should cancel the insurance that they put on it, eventually. You will still need to pay for the insurance that was there, but not forever.

Yes if you let your coverage expire. It protects their investment.