Does Navy Federal Require full coverage on their financed cars?
I just bought a 2007 VW eos through navy federal, the day I bought the car the dealer made me get insurance before I drove it off the lot. He told me just to get liability because that's all I could afford. Unfortunately I just totaled the car, and obviously my USAA insurance won't pay for the damage done to my car. So I was woundering if navy fed requires full coverage on their financed cars. And if so, why didn't they check my policy and notify me. Cause now I'm stuck with a car I can't drive, and can't sell (navy federal requries that I keep the car so the title can be used as collateral). I don't know what to do, its sitting at a impound an hour away from my base in san Diego. I cancan't afford the tow (which insurance isn't going to pay either) and now I gotta store it which I can't afford either... All in all, I just need to know if navy federal requires full coverage so I can see an attorney and get this messed up situation figured out...
Tom Z2013-09-03T05:25:49Z
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When you signed the papers to get your loan the document you signed had a provision within it that required you to maintain physical damage coverage on the vehicle for the entire term of your loan. When you signed it you agreed to comply with that requirement. An attorney is not going to be able to help you, it's a written contract with your signature on it.
Your predicament is a mess.... Navy Federal is not your babysitter. You are required to have full coverage, they aren't required to babysit you to make sure you purchase it.
If you can't afford to "self insure" the car, you need to purchase full coverage. If you can't afford the tow, you wouldn't be able to afford to purchase the full coverage either. Maybe you should go after Navy Federal for providing financing on a car you can't afford = not going to happen, but it appears they shouldn't have.
What do you do? Get a 2nd job if it will work around Navy schedule.
RE: Does Navy Federal Require full coverage on their financed cars? I just bought a 2007 VW eos through navy federal, the day I bought the car the dealer made me get insurance before I drove it off the lot. He told me just to get liability because that's all I could afford. Unfortunately I just totaled the car, and obviously my USAA insurance won't pay for...
It's not up to the dealer to "enforce" it, it's up to you, to live up to your part of the contract.
They eventually will catch up on the paperwork, and put "forced placement" coverage in force, on this vehicle, for the life of the loan until you pay the loan off - which, of course, you still have to do.
Look, you don't NEED to be notified that you don't have "full coverage". You already KNOW that, because you KNEW you weren't paying for it. No use pretending to be three - you tried to cheat the system, you broke the contract terms, and you got caught - in the most expensive way possible.
What you do now, is get the car out of the impound lot - and stored somewhere, until you've paid the loan off. Which you still have to do.
An attorney isn't going to be able to help you out. YOU broke the contract. As an adult, it's not up to SOMEONE ELSE to keep you honest. You have to be honest yourself, or crap like this comes back and bites you in the @ss. LIke it just did.