Does insurance help with rental when car repossessed?

In most cases, insurance does not help with rental car expenses if your vehicle is repossessed. When you insure a car, you essentially sign an agreement with the insurance company to help pay for repairs and other covered damages, should your vehicle be involved in an accident or other covered event. However, repossession is not typically considered a covered event under most insurance policies.

That said, there may be some exceptions to this general rule. For example, some insurance companies offer optional coverage that can extend your policy to cover specific types of non-accident related expenses, including repossession. If you are concerned that your vehicle may be at risk for repossession, it's worth contacting your insurance company to ask about any available coverage options that could help you cover the cost of a rental car.

Here are some additional details about insurance and repossessions:

* If your car is repossessed, the lender (typically a bank or credit union) becomes the legal owner of the vehicle and is responsible for its care. This means that they are not required to provide you with a rental car or any other means of transportation.

* If you have personal property in the car when it is repossessed, the lender may allow you to retrieve it. However, they are not required to do so, and you may be charged a fee for any property that you are able to recover.

* Repossession can have a significant impact on your credit score, making it more difficult to borrow money in the future.

If you are facing the potential for repossession, it is important to act quickly to protect your rights and minimize the financial impact. Here are some steps that you can take:

* Contact your lender immediately and let them know that you are having difficulty paying your auto loan. They may be able to work out a payment plan or some other arrangement to help you keep your car.

* If you cannot reach an agreement with your lender, you should contact a legal professional who can help you understand your rights and options.

* If your car is ultimately repossessed, it's important to file an insurance claim if you have coverage that may apply to repossession. You should also keep any documentation related to the repossession, including any correspondence from your lender and receipts for any expenses that you incur as a result of the repossession.

By understanding your insurance coverage and taking action to protect your rights, you can help minimize the financial impact of a repossession.