Financial lenders insurance charges

[Sherry Walls]

I purchased a car with my Dad and I was on his auto insurance, my dad cosigned for the car)when they moved to Phoenix, and I stayed in Sacramento, I was automaticly dropped off the there auto insurance, I was unaware....

My lender found that I was not covered three months later, I furnished my autoinsurance three weeks later, they are now trying to charge me for the three months prior to the discovery of no auto inusrance.

I think this is incorrect, I can understand charging me for the time frame they found out there was no coverage. The key here is; that they did not incurr any cost for insurance on that vehicle during that time frame and that if something would have happended to the car, I would have been liable for the cost.

I want to know what my legal rights are in this case. They are trying to charge me $1000 or over w/late fees, for four (4) months auto insurance?

 

[racer72]

Read the contract you signed when purchased vehicle. You will find the insurance clause that states the the vehicle will be fully covered with insurance for the life of the loan and that at there option, they will insure the vehicle to cover only investment in the vehicle if the insurance lapses or is cancelled. And that you will pay for the insurance. It was your resonsibility to keep insurance on the vehicle and you failed to uphold your end of the bargain. They might have let you slide one month, but not 3. If you don't pay, you could have your vehicle repossesed and incur other charges too.