Auto Insurance Claims: Lienholder buys retroactive coverage, buying life insurance, life insurance today

Question
Because I lost my job I went without coverage on mycar for approx 5 months. Can the credit union that is financing my car buy coverage retroactively and add the3 cost to the amount of the loan?. Can the insurance agent sell it? it's like buying life insurance today for my previous year of being alive!?  

thanks

Alex (Houston, TX)

Answer
Hi Alexander,

That does sound a bit fishy. However, if the insurance company is willing to sell it and accepted the premium it may be just fine.

You should contact the Texas Department of Insurance to ask them if this is legal.

I hope this helps
Richard Hixenbaugh