Can I turn in the tags on a car with an auto loan in florida?
I live in Florida and I recently had a loss of income and can't afford both my car payment and insurance. I'm working on getting back on my feet but I want to know if I can turn in my tags on the car so I don't have to pay the insurance and continue to make payments so it's not repossessed. I won't be driving it obviously.
- AnonymousLv 71 month ago
Nope. The lender WILL let you turn in the car AND the tags, for a voluntary reposession. However, they will NOT let you keep the car, uninsured. It MUST be insured, while there is a loan on it.
- EdnaLv 71 month ago
I don't care what state you live in. If you don't make your monthly payments to the finance company on time, the finance company WILL repossess your car. Until the loan is paid in full, the finance company keeps the original Title, and they OWN the car. The finance company doesn't care if you've registered the car or if it has tags - the finance company just wants its money. If you cancel the insurance on the car (which the finance company REQUIRES that you have), the finance company will certainly repossess the car.
- Anonymous1 month ago
Not going to work. They will repo it if you don't have insurance because they will assume you are still driving it even if you promise not to.
They may be willing to let you sell it short or go ahead & auction it off while you continue paying. That way you would not need insurance but it might hurt your credit and show up as a repo even though you continue paying.
- MayLv 51 month ago
The loan company will insist that you keep, at all times (at least) collision and comprehensive coverage on "THEIR" car even if you don't drive it. If you don't drive the car or park it on public roads, You do not have to turn in the plates either. You do not have to keep registering a vehicle if it is parked off street and not driven.
Keep insurance on the car and make the loan payments and you are all set.
If you can afford neither, sell the car.
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- ScottLv 61 month ago
Cancelling your insurance would result in a default on your loan agreement. They could repossess your car over this, but most likely they would force you to pay for their very expensive insurance. Whether it's being driven or not, the car still has to be covered by insurance.
- StephenWeinsteinLv 71 month ago
Even if you turn in the tags, you still have to pay the insurance. If you don't, then either it will repossessed or the loan/finance company will get "forced placement insurance", which will cost more than your current insurance, and add the cost to your loan payments, so your payments will be more than paying both the loan and insurance. You cannot pay only the current loan payment. And paying the insurance that you have now is the cheapest way to avoid repossession.
- Coffee DrinkerLv 71 month ago
The car loan requires you to carry full coverage insurance, including comprehensive policy which insures against things like theft, vandalism, or other things that can happen to a car while its parked (such as a tree falling on it or damage from heavy hail).
What you can do is call the insurance company and ask if they can give you a lower rate for a vehicle that's in storage or with a much lower mileage estimate.
- Anonymous1 month ago
Read the contract you signed with the bank. It undoubtedly requires that the car be insured at all times. This is a contract matter.
- EvaLv 71 month ago
As long as you have a lien on it you must continue the insurance. It's a requirement in the loan papers you signed. Call your insurance company and see if they will give you a lower rate for having the car in storage.