Q: If My Car Gets Repo’d and I still have a few months left on my car insurance policy do I have to pay it?
AIS Answer: Once a vehicle is no longer registered in your name you can drop the vehicle from your auto insurance policy. Although that doesn’t necessarily mean the vehicle is not still registered with the DMV in your name (though you would have a lien holder).
You will have to check with your insurance company for their exact policy regarding this issue. It seems likely that the day your vehicle is no longer in your possession due to bank recovery – then you certainly will not be driving it anymore and therefore have no need to pay for car insurance on a vehicle that you no longer own.¬¨‚Ä† However, there are plenty of instances where a person’s vehicle is repossessed and they pay off the balance due and the vehicle is returned. In this instance you will obviously want the car insured.
Again, and I can’t say this enough. Please contact your current insurance company and verify with them the correct procedure for dropping a vehicle from your auto insurance policy before making ANY changes to your policy.