Will Allstate notify my lender if I switch my insurance from full coverage to liability?

Is it possible to switch to liability only without my lender knowing? I bought a car not knowing that I'd need to maintain full coverage on it. Right now I can afford it, but I'm scraping by. I thought I might be able to switch it to liability insurance without the lender knowing.

Answer provided by
avatar
Eric Schad
Answered on Jul 15, 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.
“Don’t do it. While Allstate may or may not contact your lender, it’s really a moot point.
If Allstate does tell your lender, your lender will immediately add force-placed insurance because you’re in breach of contract. This insurance is often three to five times more expensive than insurance you’d buy on your own.
Furthermore, the lender can also cancel your loan and take possession of the vehicle because you breached your contract.
Instead of being deceitful, start shopping for car insurance on Jerry. With side-by-side comparisons of dozens of insurers, you can get the best full coverage rate for your vehicle.”
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies