Can a mortgaged car be insured under my own name?
2 Answers
Whether a mortgaged car can be insured under your own name depends on whether the vehicle has been transferred, because auto insurance is based on the name on the vehicle registration certificate. The subject matter of insurance is the vehicle itself, and it doesn't matter who the policyholder is. Introduction to auto insurance: Motor vehicle insurance, also known as auto insurance (abbreviated as car insurance), refers to a type of commercial insurance that covers liability for personal injury or property damage caused by natural disasters or accidents involving motor vehicles. Definition of auto insurance: Motor vehicle insurance, or "auto insurance," is a type of transport vehicle insurance that covers the vehicle itself and its third-party liability.
Of course, you can have the insurance for a financed car under your own name. I encountered a similar situation when I bought my car. Since you are the owner of the vehicle, the policy should rightfully be registered in your name, which makes the claims process smoother in case of an accident. However, lenders typically require you to add them as the 'loss payee' or 'additional interest' in the insurance contract. This means that if the car is involved in a major accident or stolen, the insurance company will prioritize compensating the lender to minimize their risk. In practice, simply contact your insurance provider and inform them about the loan details—they will handle the additional clause for you. Failing to do so might affect your loan agreement, and the bank could even intervene. Overall, keeping the insurance under your name is the safest approach, so don’t worry too much about the complexity.
