What happens to your car loan if you lose your license?

"I recently lost my driver's license and now I can't drive the vehicle I financed.

What happens to the car loan itself?"

“Losing your driver’s license shouldn’t have any impact on your car loan at all. Your name is still on the loan and regardless of whether or not you can drive the vehicle, you still own it and are legally required to keep paying your loan.
Your car insurance might be a different story if you get a DUI. If you had your license revoked for other reasons, your insurer may or may not cancel your policy. However, your car will still need to be insured as part of the stipulations of your loan.
If you have a spouse or family member, you might want to add them to your policy so they can drive you to work or wherever you need to go.”
Eric Schad
Answered on May 21, 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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