help with car payment

Hi reiki0809,

I work in insurance and see this sometimes. Have you sent a copy of the insurance policy to the car company? Usually if you prove that you have had insurance, they are supposed to cancel their forced placed policy. Anything you paid should be applied toward the car loan...

Ditto what dawnlango said.

Your financing contract requires you to carry comp/collision coverage on the vehicle at all time while it is being financed. Most likely, at some point, they received a cancellation notice on your own policy (usually happens if you were late making your insurance payment). If they never received a reinstatement notice or new policy declarations, then they would add their own single interest policy to the account. Which in turn makes the payments increase to cover the cost of their insurance. That is legal for them to do, as long as you have not provided them with proof of your own dual interest coverage.

When you provide them with proof of your own coverage, they should cancel their own policy and apply a pro rata cancellation refund against your account. If you can prove your insurance never lapsed, then they should flat cancel the policy and issue a full refund.

All fianance contracts require that you carry full coverage but I have never had to show proof of insurance to a finance company and I have had several car notes. I would think you could clear things up very easily by showing proof of insurance though. I think you need to get your doceumentation in order from your insurance company showing continuous coverage for the entire life of the loan. If you had multiple companies then you will need to gather the information from each company covering the full time period. I don't think they can just tack an insurance payment on the bill especially if you have your own coverage but it would be wise to review your loan documents. I have changed insurance companies several times and never sent any documentation to the finance company. They have no effective way to monitor my insurance coverage as far as I know unless they can pull it from a computer some how. Basically what this company is doing stinks and appears underhanded to me.