You don't have much of a choice. Your bank will place their insurance on it if they don't think you have any and then you get charged their inflated rates.hey everyone -
Received a letter from the bank where I am financing my car and they are asking for updated insurance. I cancelled my regular insurance during the TLC process and added commercial liability plus a separate insurance for collision.
Since this wasn't a commercial auto loan, I just went to a regular dealership, is it going to raise a red flag when I send them the commercial insurance info? Are they likely to take back the loan even though I have full coverage?
Thanks for the response.I financed a new car recently for personal use directly from the dealer. My wife drives the car. Sometime in the next few years I may register this car for TLC. I asked the dealer if there would be any problem with the loan if I register the car for TLC. He said "you'll probably be okay, it's up to the bank".
I don't think they would revoke your loan. That would surprise me. If they have a problem they'd most likely have to present you with an opportunity to quit first.So would it be wiser to let them place their own insurance instead of submitting mine and running the risk of the loan being revoked?