finance company and car insurance

[sailor41]

I would like to know if a finance company takes out a car insurance policy on you and you prove that you have full coverage are you responsible for payment on the policy that the finance company took out? Is it legal for a finance company to take out car insurance policy and not let you know until a year later? I really need a quick response on this one.

 

[buddy2bear]

You are talking about "credit life insurance?" Credit life insurance is mixed in with all the other paperwork on practically everything you buy that is a "big purchase." It provides a payoff on a loan if a person dies before the loan is paid. A lot of times, the finance company or car salesman, won't tell you about it (even though they are required to) and you just keep siging your name on the dotted lines. They get a "commission" for you buying it. Since it has been a year, I really don't know what you could do about it now. However, you could call your State's Insurance Commissioner's office and see if they have any suggestions and the next time, read, read, read, whatever you sign!