When a car is repossessed, the lender takes possession of the vehicle and is responsible for insuring it. If you were the person supplying insurance on the car prior to it being repossessed, you are required to notify your insurance company of the repossession. If you fail to do so, your insurance company may cancel your policy and you may be liable for any damages that occur to the car while it is in the lender's possession.
In most states, it is illegal to drive a car without insurance. If your insurance policy is canceled, you may be ticketed and your license may be suspended. In some cases, you may also be required to pay a fine or serve jail time.
To avoid having your license suspended, it is important to notify your insurance company of any changes to your vehicle ownership, such as a repossession. You should also make sure that you have adequate insurance coverage in place before you drive a car.
