I'm currently financing my car thru a local credit union. I changed my insurance to garage insurance for the winter so I could save some cash since I won't be driving it in the winter. My credit union sent me a letter saying that I have to put full road insurance on my car or they will just charge me more on my monthly payment for it. I've read where a lot of guys here use Pen Fed cause of the great financing. Do they allow you to just have garage insurance on your car or not? If they do I'll probably try to switch over to them.
Question about Pen Fed and garage insurance on Shelby?
- Thread starter dotmpeg
- Start date
I believe any finance company that has an interest, aka: lien, will require full insurance. As they have to protect their asset
I believe that is pretty common. They want to know if something happens they will get their money.
I financed through PenFed but, since I drive mine (as weather permits) all year-round, I haven't tried to reduce any of my coverages. That said, I agree with Troublemaker and phil - full coverage is likely to be required by any lien-holder.
Put yourself in the lender's position - What GUARANTEE do they have you won't drive the car, without "road use" coverage, risking the collateral used to secure the loan they gave you?
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Every lending institution is different. But most will let you keep "garage insurance" in the winter. Just contact them directly and explain the situation. They will usually require you to sign an affidavit that you will not drive the vehicle within specified dates, and without full coverage.
Yea I guess you're right. I wouldn't drive it without insurance but whose to say joe blow down the road won't. Lol I guess I could call them like iceman suggested. Thanks for the replies fellas.
I'm not sure if Pen-Fed ever said anything to me in regards to what type of insurance I can have....you could always call them and ask. I have Allstate and they don't have any type of "garage insurance". I have a feeling less companies do these days. The best thing they did was seasonal coverage which saves me maybe 100 bucks a year.
As soon as the temperature in PA was consistently below 40 degrees, I stopped in to my Insurance agent, and suspended the road insurance on my car. I have not heard a thing from Chase Auto Financing about not having full coverage.
-Satch
-Satch
I did the same thing but I have Ashland credit union and they called me about a week later saying they would add 3300 bucks to my loan and 270 more a month.
I have never heard of this because I live in Texas I guess. So, help me understand this-
During the winter, you can take off road coverage insurance and just have insurance covering the car in case a sink hole swallows it under the garage, or your house burns down kind of thing?
Interesting. So, what if you drive the car mid winter during a hot spell, just to change the oil and wash it, or your daily breaks down and you are just gonna drive it a couple days while your daily gets fixed- You have an accident, the insurance doesn't cover your car, and the lender gets nothing but a wreck as compensation? Where is the downside here? Surely a bank would trust its customers to not do that, right? I mean, you are required to at least swear on your mother not to drive it, right? How untrusting of them.
Sorry- couldnt pass up the chance. I would never allow that if I were a bank. Seems like a big liability waiting to happen. While no one here might take advantage of that, someone, somewhere will.
As for the one bank that hasn't caught the above poster- Im sure they don't know you no longer have full coverage somehow. Perhaps someone is not doing their job there.
During the winter, you can take off road coverage insurance and just have insurance covering the car in case a sink hole swallows it under the garage, or your house burns down kind of thing?
Interesting. So, what if you drive the car mid winter during a hot spell, just to change the oil and wash it, or your daily breaks down and you are just gonna drive it a couple days while your daily gets fixed- You have an accident, the insurance doesn't cover your car, and the lender gets nothing but a wreck as compensation? Where is the downside here? Surely a bank would trust its customers to not do that, right? I mean, you are required to at least swear on your mother not to drive it, right? How untrusting of them.
Sorry- couldnt pass up the chance. I would never allow that if I were a bank. Seems like a big liability waiting to happen. While no one here might take advantage of that, someone, somewhere will.
As for the one bank that hasn't caught the above poster- Im sure they don't know you no longer have full coverage somehow. Perhaps someone is not doing their job there.
Caught me? Im assuming youre talking about me? Ive done nothing wrong. Its not uncommon to have "seasonal insurance" on something. I done it before with my 04 cobra. I was just posting hoping somebody with pen fed was doing the same and they, pen fed, didnt have a problem with it. I think my 04 was paid off at the time. I cant remember its been years ago.
Yes. I did on my '97 Cobra when I was away from home for extended periods, courtesy of the USAF, BUT that car was paid off. Like you, I can't imagine why any lending institution would permit this. Whether you promise to keep the car in the garage or not, they're assuming a higher degree of risk in letting their investment go without full coverage.
Everyone calm the fudge down.
I refinanced my '13 a couple months back to a credit union.
I also received an eerily similar letter.
I cursed.
I called loan department.
I was informed that if I speak with some loan lady, they grant waivers.
I spoke with loan lady.
I was told by loan lady my insurance agency should fax them letter explaining stuff.
I did this.
I kept storage insurance and everyone lived happily ever after.
Also, if you wreck your car while driving uninsured...because that's what this would be if you wreck your car while it's only on storage.... you get in trouble and im sure they find a way to recoup their cash.
I've been doing seasonal coverage or whatever for 10 years. Shelby goes from 660ish for 6 months to 110.
I refinanced my '13 a couple months back to a credit union.
I also received an eerily similar letter.
I cursed.
I called loan department.
I was informed that if I speak with some loan lady, they grant waivers.
I spoke with loan lady.
I was told by loan lady my insurance agency should fax them letter explaining stuff.
I did this.
I kept storage insurance and everyone lived happily ever after.
Also, if you wreck your car while driving uninsured...because that's what this would be if you wreck your car while it's only on storage.... you get in trouble and im sure they find a way to recoup their cash.
I've been doing seasonal coverage or whatever for 10 years. Shelby goes from 660ish for 6 months to 110.
Call Grundy and get yourself a nice agreed value policy with full coverage for all year use.
Who was that directed at?
The OP who doesn't drive his car all year round and enjoys saving money by not having a nice policy for year round coverage, or someone else?
Correct. I would be shocked if Chase was okay with that. I had a home loan with them. Friendly and customer oriented are not two words I would use to describe that experience.
Yep, I can see military exceptions for sure. Especially with USAA.
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