Will the insurance company contact the financial institution that financed my car when I start a new policy?

hiimjordan2000: Will the insurance company contact the financial institution that financed my car when I start a new policy?
I am thinking about changing insurance companies, and I am wondering if the insurance company contacts the lender or if I am responsible to do so?

Answers and Views:

Answer by mud_slinger8
I have changed insurance on my vehicle and never called the finance company. I don’t think that you are required to tell them you changed companies or that they even require the insurance. Insurance is more for the owner of the vehicle incase of an accidents or other mishaps. But ask the insurance company for sure but I don’t think that you or the insurance carrier have to inform them. They would be better to tell you that.

Answer by Ginelle
You need to ask the agent when you purchase the policy. The company should contact your lender (provided you gave the lender’s information), but it is important you ensure this happens in a timely manner. Your lender may have penalties if they believe you have not kept their investment insured. To be doubly sure, you should just fax your new declarations page to your lender.

Answer by Teddybearalso
When a car is financed, the financer is named as the first payee in case of the vehicle being totaled. The insurance sends a Binder to the Finance Company. Some financers will put insurance on the car and charge you if your policy runs out, if they do that, you just furnish them with your proof of Insurance again and the start date to show that you had no uninsured periods and they will drop it.