How can I get rid of force-placed insurance?

My car insurance recently lapsed because I forgot to pay the premium. As a result, my lender added a force-placed insurance policy, which nearly doubled my premium. How can I get rid of force-placed insurance to lower my bill?

Answer
“Force-placed insurance is an insurance policy that your lender puts on your car loan if your car insurance lapses, whether intentionally or unintentionally. These policies often cost up to twice as much as regular policies, simply because you’ve been placed in the high-risk category of drivers.
However, you can lower your car insurance rates and remove force-placed insurance in just a few steps:
  • Keep making your auto loan payments; don’t stop because you feel slighted or misled.
  • Use Jerry to search for the best car insurance rates and choose a policy.
  • Call your lender and provide proof of your new car insurance policy. In most cases, they’ll cancel the force-placed insurance as soon as possible.”
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Eric Schad
Answered on Apr 13, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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