QuestionHi Bennie, Can you tell me a bit about forced place auto insurance? How does the process happen? who are the carriers? How much does it cost? and how often these policies might be cancelled because the person really did have insurance but just didn't have their insurance card with them when purchasing an auto?
Thank you,
Bobbie
Answer**************************** FOLLOW UP *****************************
Hi Bobbie,
Thank you for your comments to my answer. Now, I am the one that is perplexed. Why do you feel that I deserve a rate of "8" for knowledge? Since I answered a question that no one else could, I truly feel that I deserve a rate of '10' for knowledge.
Only you can correct this by sending an e-mail to: experts@about.com
refer to the date of the question (2/25/08) and the Subject (Forced place auto insurance) and request that the rate of '8' be changed to '10'.
Thank you,
Bennie
Hi Bobbie,
I am not familiar with the term "forced placed auto insurance", but I assume that you are referring to a situation where the lender has placed coverage on the car being financed because they didn't receive proof of insurance from your company.
This is most commonly referred to as Vendors Single Interest (VSI), and is the most expensive policy in the industry and provides extremely limited protection.
They only protect the lender for the balance owed on the loan. There is no Liability or Property Damage and no type of protection for your equity in the car.
You need to secure full coverage insurance and have proof sent to the lender. They will cancel the VSI as of the effective date of your new coverage.
If you have had coverage all along, have your company send proof to the lender effective as of the date of purchase and the lender will remove all charges for the VSI.
I hope this information has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area
