Can a car dealership take my car for not keeping my insurance current?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a car dealership take my car for not keeping my insurance current?

I am timely with my car note; it is not leased. The dealership has called and threatened to take my car for not maintaining the insurance. Can they do this?

Asked on December 4, 2010 under General Practice, Alabama

Answers:

James Johnson

Answered 13 years ago | Contributor

Yes, the dealership or finance company (whoever it is financed with) can repo the car if your loan documents require you to keep the car insured.  

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

Is the dealership holding the car loan?  As for whether or not they can just "take" the car from you that remains to be seen.  But if obtaining insurance was part of the contract for sale (and listen, it is a part of the agreement whether or not it is stated in the contract.  It is implied that is you are buying a car and the state requires insurance as most do that the car be insured) then they can institute an action for breach.  Maybe the contract does state that they can reposes it for lack of insurance.  Read it.  But if they are listed on the title they are not going to take the chance that you are not insured.  So get the insurance or sell the car. 


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption