Can A Finance Company Take Out Insurance On My Car And Charge Me For It?

Yes, if under the terms of your loan, you agree to provide comprehensive and collision insurance, and you fail to do so. The lending institution can obtain a policy to protect its interest. These policies typically do not offer liability insurance coverage to meet the state's financial responsibility (mandatory liability) laws.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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