Car loan CPI question (1 Viewer)

[NajehHejan]

Ok I’ll admit I’m an idiot. But do I have any recourse. I traded in an old car and bought another car on 1/27 and didn’t change the insurance until 3/6. Lender is saying they had to buy CPI for this period and tacked $950 onto the loan. I talked to them 3/6 and provided insurance proof and they hadn’t bought CPI yet. So after they knew they were insured they retroactively bought insurance anyway? I complained but they said unless I show proof the new car was insured they can’t do anything. My policy with the old car on it never lapsed. They don’t care. If I go into the branch and raise bloody heck do I have any chance or am I screwed? Worth getting a lawyer or would it cost too much or not matter anyway?

 

[Osaurus]

Ok I’ll admit I’m an idiot. But do I have any recourse. I traded in an old car and bought another car on 1/27 and didn’t change the insurance until 3/6. Lender is saying they had to buy CPI for this period and tacked $950 onto the loan. I talked to them 3/6 and provided insurance proof and they hadn’t bought CPI yet. So after they knew they were insured they retroactively bought insurance anyway? I complained but they said unless I show proof the new car was insured they can’t do anything. My policy with the old car on it never lapsed. They don’t care. If I go into the branch and raise bloody heck do I have any chance or am I screwed? Worth getting a lawyer or would it cost too much or not matter anyway?

For $950?  Nope.

 

[Cjw_55106]

Assuming you have a loan for the new car, you likely violated the terms of the loan by not having the car insured. What of you had killed someone in an accident? Consider it a thousand dollar lesson learned. 

 

[Juxtatarot]

Ok I’ll admit I’m an idiot. But do I have any recourse. I traded in an old car and bought another car on 1/27 and didn’t change the insurance until 3/6. Lender is saying they had to buy CPI for this period and tacked $950 onto the loan. I talked to them 3/6 and provided insurance proof and they hadn’t bought CPI yet. So after they knew they were insured they retroactively bought insurance anyway? I complained but they said unless I show proof the new car was insured they can’t do anything. My policy with the old car on it never lapsed. They don’t care. If I go into the branch and raise bloody heck do I have any chance or am I screwed? Worth getting a lawyer or would it cost too much or not matter anyway?

 What happened with the insurance on the old car on from 1/27 through 3/6?  Did your insurance company give you a refund for this time? (I'm assuming you had comprehensive and collision on the old car.)

 

[-OZ-]

For $950?  Nope.

Sure it is.

I'll only charge $500/hr, plus travel time and costs. 

 

[Juxtatarot]

Another way to think about this @NajehHejan is how you would have felt if you wrecked your car on March 1.  When you remembered you didn't have it insured, that would have felt pretty bad.  But then think how relieved you would have felt when the fine folks at the branch let you know that you could file a CPI claim!

 

[gianmarco]

I'm not sure, but if he had insurance on his old vehicle, can't his insurance company similarly retroactively cover as he was paying premiums? If so, then he'd be off the hook.

 

[Juxtatarot]

I'm not sure, but if he had insurance on his old vehicle, can't his insurance company similarly retroactively cover as he was paying premiums? If so, then he'd be off the hook.

I think that’s his only chance. It’s common for an insurance company to allow that within 30 days of getting a new car. Since he went longer though I wonder if they might have cancelled the old policy back to 1/27 and gave him a refund.

 

[The Big Guy]

How do you buy and register a new car without having insurance?  I have never been able o leave a car dealer without having given them a proof of insurance, even a temp one faxed over from my agent.  Something sounds amiss here.

 

[NutterButter]

How do you buy and register a new car without having insurance?  I have never been able o leave a car dealer without having given them a proof of insurance, even a temp one faxed over from my agent.  Something sounds amiss here.

Wouldn't he just have shown the insurance he had on the trade in?   

 

[stbugs]

Wouldn't he just have shown the insurance he had on the trade in?   

Yes. That’s what I did last year on my new SUV. I still had to call my company to give them the new car info. You don’t have to have the new car “insured” yet when you buy it just the policy  you will put it on. The loan company will need to get the final proof within a certain number of days or they’ll get you insurance and possibly change your interest rate. I got that notification from the loan company, but I made sure to get the insurance company to send them the proof in time.

Sorry OP, you screwed up and they did what they told you they’d do in the paperwork. Hopefully, there is something you can do to not pay that amount which is ridiculous for a month and a half.

 

[belljr]

How do you buy and register a new car without having insurance?  I have never been able o leave a car dealer without having given them a proof of insurance, even a temp one faxed over from my agent.  Something sounds amiss here.

This

 

[Johnny Rock]

No mail, email, call or reminder from the sales guy, dealership or finance company? 

 

[stbugs]

No mail, email, call or reminder from the sales guy, dealership or finance company? 

First, the sales guy and dealership have nothing to do with this. All they require is that you are insured and they put the insurance info into the paperwork. Second, this is all the finance company and having gone through this, I am betting he did get notified. I'd bet it was in the loan he signed as well. It's always easy to blame everyone else, but sorry, he knew he screwed up and even acknowledged it. He took too long and it sucks for him because he got screwed. I'll be the first to say that they overcharged him. It's like a bank overdraft. It's the person who did it's mistake, but the fees can be ridiculous and more than the overdraft. He's asking if there is anything to do to not get charged the $$$s.

 

[belljr]

First, the sales guy and dealership have nothing to do with this. All they require is that you are insured and they put the insurance info into the paperwork. Second, this is all the finance company and having gone through this, I am betting he did get notified. I'd bet it was in the loan he signed as well. It's always easy to blame everyone else, but sorry, he knew he screwed up and even acknowledged it. He took too long and it sucks for him because he got screwed. I'll be the first to say that they overcharged him. It's like a bank overdraft. It's the person who did it's mistake, but the fees can be ridiculous and more than the overdraft. He's asking if there is anything to do to not get charged the $$$s.

But you need to have the new car insured.  Every car I bought the sales or finance guy call my insurance give them all the info and then I get on and confirm

Eta private sales obviously different

 

[nightmare]

Ok I’ll admit I’m an idiot. But do I have any recourse. I traded in an old car and bought another car on 1/27 and didn’t change the insurance until 3/6. Lender is saying they had to buy CPI for this period and tacked $950 onto the loan. I talked to them 3/6 and provided insurance proof and they hadn’t bought CPI yet. So after they knew they were insured they retroactively bought insurance anyway? I complained but they said unless I show proof the new car was insured they can’t do anything. My policy with the old car on it never lapsed. They don’t care. If I go into the branch and raise bloody heck do I have any chance or am I screwed? Worth getting a lawyer or would it cost too much or not matter anyway?

Could you explain how you left the dealer without some form of insurance?

 

[Juxtatarot]

Could you explain how you left the dealer without some form of insurance?

It seems that some states are stricter on this than others. In my state, you can use the insurance card on the traded-in vehicle.

Anyway, what is required by law is only liability. Comprehensive and collision (what CPI covers) are required by loan contract.

 

[Slider]

I'd imagine your current insurer will write you a retroactive policy for 400~

 

[stbugs]

But you need to have the new car insured.  Every car I bought the sales or finance guy call my insurance give them all the info and then I get on and confirm

Eta private sales obviously different

Different states are likely different. I am assuming OP's state is like mine. You just have to have an active insurance policy and have a period of time (I think it was 30 days) to get a certification of insurance to the loan company. I'm in NC, but I did not have to have insurance already set on my car that I bought last year from a dealer. I also did receive a notification from the loan company (PenFed) that I had to get them that insurance certificate or I could have my interest rate altered. I called my insurance company and added the car a day or so after I had already taken it home and had them send the info to the insurance company. Also, the dealer tells you that you have X days to get the car insured, but it is covered in case off accident in that window even if you haven't gotten it added. Again, regulations per state are different.

Anyway, I'd bet that the OP's state is like NC where you just have to give them the policy # to buy the car and he basically never got the car covered in time or didn't have that info sent to the loan company on time.