Attention all lawyers(or legal savy peeps)

[Ravewolf]

Trying to do a bit of research and detective work to help out my dad. He has a very nice,almost new 1992 Blazer. Has a new motor,new trans,body is immaculate,just gorgeous. He paid $6000 for it from a guy here a few years ago by getting a loan through his bank.
I think he's getting screwed because the loan clause states he must have full coverage insurance on all the vehicle he has a loan for,and vehicles he has for collateral. It runs him about $400 or so a month,and it's killing him. A friend of mine had a loan out on a truck newer(1993),and didn't require full coverage.

I checked insurance laws for NM,and it was stated full coverage was required only if the vehicle was valued over $3000.I did a KBB check,and even in excellent condition,the blazer is still only worth 1900.

Can he demand the clause be changed,or is he stuck with it?

 

[newTSIguy]

If he signed a contact saying he agrees to cary full coverage for the vehicle then there is nothing that can be done.

 

[cs82685]

He can always change (or threaten to change) insurance carriers if in fact he doesn't need full coverage by law.

No offense though if it's not his only vehicle maybe he should just get rid of it if he still owes a balance on a 6k loan for a vehicle he has had for at least two years.

If it is his only vehicle he either has a terrible record or is just getting raped on his premiums

 

[Gysgt Guy]

I'm not how different states pan out but in Texas your also required to have full coverage on any loan. But my bank said just liability was ok since I'd been with them awhile. So I'm assuming there is always loopholes/exceptions the lienholder can make if they want to.

EDIT: also try looking into one of those independent loan companies. Just get a PERSONAL loan and pay off the car with it. Then y'all will have the title and only min. Coverage required. You'll probably pay a bit more on interest but the savings from insurance could outweigh it.

 

[phunny]

$400 a month for a $1900 car. I'm guessing he's got some issues. He agreed to the terms, and it's in writing. Laws like that tell you the bare minimum you must have and banks have the right to demand more, it's their money...

 

[99gst_racer]

He paid $6k for a $1900 vehicle? Ouch!
I'm sure it varies in every state, but here in MI, you have to carry full coverage on anything with a lein regardless of value. The way around this is to avoid getting a vehicle loan from the bank, and instead, get a personal loan and tell them it's for home improvements.

And if he had a clean driving record, full coverage on that thing would only run about $50/month.