What if loss payee is not added to a commercial auto policy?

If the loss payee is not added to a commercial auto policy, the insurance company may not pay the repair or replacement costs directly to the lienholder. Instead, the insured will receive the payment and be responsible for paying off the lien. This could lead to a number of problems, including:

* The lienholder could foreclose on the vehicle. If the insured does not make payments on the loan, the lienholder may be able to repossess the vehicle.

* The insured's credit could be damaged. If the insured defaults on the loan, it could damage their credit score, making it difficult to borrow money in the future.

* The insured could lose the vehicle. If the insured cannot afford to make the payments, they may have to surrender the vehicle to the lienholder.

To protect themselves, commercial auto policyholders should always make sure that the loss payee is added to the policy. This can be done by requesting a change to the policy with the insurance company.