Insurance Claim on Repossessed Car: What You Need to Know

Insurance Claim On Repossessed Car: What You Need To KnowSource: bing.com

Having your car repossessed can be a stressful experience, but it can be even more complicated if you have an insurance claim to make. If you find yourself in this situation, it’s essential to understand your options to ensure that you get the compensation you are entitled to.

What is a Repossessed Car?

A repossessed car is a vehicle that the lender has taken back from the borrower because they have failed to make their loan payments. The lender can then sell the car to recoup their losses.

If you have an insurance claim on a repossessed car, it means that you had an accident or suffered damage to your car before it was repossessed.

What Insurance Covers on Repossessed Cars?

The type of insurance coverage you have on a repossessed car will depend on your policy. However, most insurance policies will cover the same things regardless of the situation.

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Comprehensive coverage will usually cover damages caused by theft, vandalism, and natural disasters. Collision coverage will usually cover damages caused by a collision with another vehicle or object.

If you have liability coverage, it will cover damages caused to another person’s property or injuries to another person in an accident where you are at fault.

Can You Make an Insurance Claim on a Repossessed Car?

Yes, you can make an insurance claim on a repossessed car if you had an accident or suffered damage before it was repossessed. However, it’s essential to understand that making a claim on a repossessed car can be more complicated than making a claim on a car that you still own.

What Happens to Your Insurance Policy When Your Car is Repossessed?

When your car is repossessed, your insurance policy will usually be canceled, and any unused portion of your premium will be refunded to you. However, you will still be responsible for any outstanding balance on your car loan.

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If you had a loan that required you to have full coverage insurance, the lender may purchase insurance on the car after it is repossessed to protect their investment.

Steps to Take When Making an Insurance Claim on a Repossessed Car

If you need to make an insurance claim on a repossessed car, there are several steps you should take to ensure that you get the compensation you are entitled to:

  1. Contact your insurance company as soon as possible to report the claim.
  2. Provide the insurance company with all the necessary information, including the date and time of the accident, the location, the description of the damage, and any injuries that were sustained.
  3. Provide the insurance company with the contact information for the lender that repossessed the car.
  4. Cooperate with the insurance company’s investigation and provide any additional information or documentation that they request.
  5. If your claim is denied, appeal the decision or contact an attorney for assistance.

Conclusion

Making an insurance claim on a repossessed car can be a complicated process, but it’s essential to understand your options to ensure that you get the compensation you are entitled to. If you find yourself in this situation, contact your insurance company as soon as possible and follow the steps outlined above.

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About the Author: D. Jolly