Can my auto loan company charge me for not having insurance for a month 3 months after it happened?

I didnt have insurance for the month of april and In August they charged me insurance for April. I asked the rep. if i would have had an accident in april would they have payed for it , she said no. How can they charge me for a service they didnt provide?

Can my auto loan company charge me for not having insurance for a month 3 months after it happened?
I'd fight this. If you didn't have any losses to your vehicle during the period they are trying to charge you for, then what's their concern? I understand per your contract you are required to carry insurance coverage on your vehicle, but the only thing they need to be concerned about is if you currently have active coverage. If you're not carrying coverage right now, then they have the right to charge you for placing their own coverage on your vehicle.





It sounds like they are just trying to extract extra money out of your pocket for a lapse in coverage in the past.
Reply:You must keep their vehicle insured until you pay it off. Its in the contract.
Reply:Be glad that your insurance company is charging you and not the state you live in. In Maryland, it is State Law that you carry auto insurance. Failure to carry auto insurance results in a daily fine for each day not covered.





Not sure of the amount, but I believe it is around $100 per day...





Plus any lapsed insurace reported will stay on your record for 3yrs. Increasing your insurance amount along the way...
Reply:The insurance they are billing you for only would have paid for their interest in your car had you had an accident during the month that you were with out insurance. That insurance would not have paid for any damage you did to anyone else's property or for any equity you have in the car.





Your loan company does not have an interest in anything but your car. Their interest is the amount of the loan. Therefore, they do not care if you have insurance beyond the amount of the loan.





Your loan documents give them the right to put a policy in place for their interest in the event you let your policy lapse.
Reply:Yes, it's in your contract. The forced placement coverage doesn't cover YOU, doesn't cover any damage that your car does to another vehicle or anyone else - it ONLY covers the loss in value to your car, from the lender's point of view, if they have to repo the car (let me know if you want an example). It's a VERY limited coverage.





They didn't provide YOU with a service. In your contract, you agreed to pay for THEM to protect THEMSELVES if you don't do it yourself. That's why they can do it - you agreed to it in the loan documents.
Reply:on any car you have a loan on has to be insured it in your contract when you got the car...your lucky they haven't repoed it yet