I signed a new car loan but did not have full coverage insurance. Is this contract valid?
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I signed a new car loan. They told me that I could not take the car home until I had full coverage insurance. When I went to get insurance they would not cover me any further. Now I want out of the deal with the dealership. I was told by a friend that the paperwork that I filled out was fraudulent since they knew that I did not have full coverage. Is this true and can this contract be voided because of it?
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abqdan said:
No. A condition of the contract is that you must obtain full coverage on the vehicle OR THEY WILL ARRANGE IT. That’s in all new car purchase agreements. They will go out and find someone to assume the risk, and you will be stuck with the bill for the insurance. Since you are presumably a bad risk, my guess is that the insurance premium will be astronomical.
I would contact them immediately and explain the situation, and ask them to cancel the agreement. They may (although they’ll probably charge you something for their trouble) but the contract is valid, and they could enforce it if they want to.
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0February 21st, 2010 at 5:43 pm -
glamour04111 said:
tell the car lot you can not get full coverage and they probably will let you out of the contract but I have never heard of a company refusing anyone full coverage. Good Luck! I think you are stuck with a new car.
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0 0February 21st, 2010 at 5:43 pm -
?Tom? said:
I guess you need to go to another insurance company.. and pay through the nose for full coverage…
You should have talked with your insurance agent before signing papers for the car.
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0 0February 21st, 2010 at 5:43 pm
