Legal Question in Insurance Law in California

I had full coverage yet finance co still trying to charge me for insurance

I had full coverage on my car with Allstate. They never noted who the lein holder was on the account. Now even though I have shown the finance company proff that I did have full coverage insurance, they want to charge me an extra $2000 for adding their insurance. They say since no lein holder was put on the insurance paperwork, it doesn't apply. They will still charge me. Is this legal? I fulfilled my insurance obligations, yet I still get charged by the finance company even though the Insurance company didn't put in in their system?So I'm getting charged for insurance twice? if I don't pay they say they will take the car and it's almost pd off.


Asked on 3/26/08, 4:53 pm

2 Answers from Attorneys
Steven Murray Steven W. Murray, APC

Re: I had full coverage yet finance co still trying to charge me for insurance

Somebody made a mistake, as the reason Allstate never named the finance company must be determined. If it was your fault by not advising your insurance agent to place the lienholder on your policy, then this is the result. If you did tell the agent, the agent and Allstate may be liable. If the dealer handled it all, then responsibility may lie there. If the finance company handled it, then they should not be able to charge you.

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Answered on 4/05/08, 10:26 am
Lowell Houghton Law Offices of Hagop Chopurian

Re: I had full coverage yet finance co still trying to charge me for insurance

If you were required by the finance agreement to provide the proof of collusion insurance, and you failed to do so, you could be held liabile for the cost of the finance company to insure the car for collusion. Did you ever provide proof to the finance company that you had collision insurance? Did they ever ask for proof? If you provided proof you may not be liable. You might be able to negotiate a reduced amount if the finance co has no proof of following up with you to inquire about the coverage.

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Answered on 4/04/08, 3:32 pm


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