Comprehensive Car Insurance Pittsburgh, Pennsylvania
Reader’s Question:
My son is has a lien on the car in Frederick, Maryland and he can’t afford the car insurance that is being required by the lien holder. So if he does not carry the proper insurance that is being required of him to carry, what will happen legally to him? I am also wondering if the finance company will take the vehicle back for not carrying proper insurance?
Anna
Pittsburgh, PA
Until your son completed paying for the vehicle, the vehicle still belongs to the finance company. His lien holder is probably requiring him to carry collision and comprehensive coverages for the car.
These physical coverages of comprehensive and collision will help cover the automobile up to its ACV so they can recoup the value of the automobile if it is totaled in an accident. If your son does not have the collision and comprehensive coverages, the finance company will force him to carry their collision and comprehensive coverages (so they can protect their asset) at much higher rates. They can also take back the automobile which will affect your son’s credit negatively.
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