Auto Insurance Claims: theft and unisured cycles, insurance comapny, finance contract

Question
Is it true or false that a dealer has insurance when one fails to insure for more than a month,as to where it increases the payments of the cycle to cover for any damages or theft?

Answer
Hi Yvette,

No, the dealer does not have automatic coverage. In some cases the finance company will purchase insurance and add it to your finance contract when they are notified by your insurance company that your coverage has lapsed. However, they are not required to do so and it could take several months before they do. If they are notified by your insurance comapny that your coverage has lapsed, they will usually send you a letter giving you 30 days to provide proof of coverage before they purchase coverage themselves.

I hope this helps
Richard Hixenbaugh