Anyone know how to get around GM Financial's collision requirement?

[HuJass]

Anyone know how to get around GM Financial's collision requirement?

I take my Camaro off the road for the winter. I turn the plates in and reduce my insurance coverage to just comprehensive.

Just got a letter from GM Financial that says the car must have collision on it for the life of the loan.
My insurance company cannot add just collision to it. They must add liability as well.

So in other words, I have to pay for full coverage during the winter months when there is 5 feet of snow outside and the car sits safely inside.

This is BS. I've never had that requirement with any other car loan I've ever had.


There's gotta be a workaround for this. It just doesn't make any sense to have to pay for services that I'll never use.

Anybody have any experience with this?

[Mels RS]

GM has no control over when you "store" your car.

If you decided to take it out one time in the middle of winter, they want to be covered.

[myold88]

Originally Posted by Mels RS

GM has no control over when you "store" your car.

If you decided to take it out one time in the middle of winter, they want to be covered.

This ^^^^ Or even a stupid relative finds the keys and decides to take it
for a spin. So many different things can happen. GM has to protect themselves.

[motorhead]

I don't know any financial institution that doesn't require you to maintain full coverage while you have a note with them.

[Windycity]

Pretty much all companies that finance cars will require that...you must have "full coverage" at all times as long as you still owe money on it. If you pay the car off early you can do what ever you want with insurance

[HuJass]

Bought several new cars since 1996.
Not one lender required keeping collision on it.

The car can't even start. No one's taking it out.
F'ing ridiculous!!

I'll be calling my state's attorney general.

[VTSummit]

Insure with a company like Hagerty and they can put full on it to cover theft etc while it's off the road for the season for cheap.

[Ragnar]

OP, you most likely signed a document stating that you would keep full coverage ins. when you financed your car. Some companies can do what is called force placed ins. which is more expensive. Keep us posted.

[The Dutchman]

Originally Posted by HuJass

Anyone know how to get around GM Financial's collision requirement?

I take my Camaro off the road for the winter. I turn the plates in and reduce my insurance coverage to just comprehensive.

Just got a letter from GM Financial that says the car must have collision on it for the life of the loan.
My insurance company cannot add just collision to it. They must add liability as well.

So in other words, I have to pay for full coverage during the winter months when there is 5 feet of snow outside and the car sits safely inside.

This is BS. I've never had that requirement with any other car loan I've ever had.


There's gotta be a workaround for this. It just doesn't make any sense to have to pay for services that I'll never use.

Anybody have any experience with this?

Once it's your car then you can put whatever insurance you want on it.

[jos3ywales]

dont know what it is where you live but State law Requires in Tennessee if you have a loan on you Car is must be covered with Full coverage insurance for the Term of the Loan, After the loan is Paid in full and only then may you lower your Coverage.

[two_wheel_mayhem]

It's part of the contract you signed when you got a loan for the car, forget the attorney general.

Your insurance company is the one that ratted you out to the finance company. They used to not pick up on changes in insurance so quickly.

[christianchevell]

Talk to your insurance and explain its stored for the winter and you should get a discounted rate until you call to take it out of storage....

[mar10]

Originally Posted by HuJass

Bought several new cars since 1996.
Not one lender required keeping collision on it.

The car can't even start. No one's taking it out.
F'ing ridiculous!!

I'll be calling my state's attorney general.

Every loan I've gotten requires full coverage until it's paid. This is probably the first time your insurance company reported to them. Your insurance company saw a way to get more cash by restoring it to the finance company because how else would they find out?

[scandata]

Originally Posted by christianchevell

Talk to your insurance and explain its stored for the winter and you should get a discounted rate until you call to take it out of storage....

This sounds like the only possible solution, as long as they keep the same coverage on it. It's definitely a long shot, but if you threaten to leave for another company they might give you a break on the price. In the mean time, call around and explain the situation to other insurance companies. Maybe one will offer a better deal.