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Paying cash

We recently purchased a SUV and paid cash for it. It was pricey but why should we be questioned and just wondering what's the reason for there 'caution'??11 We were asked who our lender was before we could proceed to get insurance on it. I answered that we didn't get a loan we paid cash. The agent said that they would have to contact the lender. Why is that? They did a credit ck on us and just wondering why? Is there anyone that has had issues with car insurance? We have good credit and have always paid our insurance bills on time and pay them 1 year in advance for home and every 6 months for autos. If we could pay for 1 yr and save money we would but they only allow 6 months.


Asked by cat4458 at 8:45 AM on Mar. 26, 2017 in Money & Work

Level 14 (1,668 Credits)
This question is closed.
Answers (6)
  • I would tell them again and very slowly this time. So they could understand. We paid cash for the car. There is no loan or lender. We saved the money ourselves. If they do not understand that. Find different insurance.

    Answer by louise2 at 7:33 PM on Mar. 26, 2017

  • Did you receive title at the transaction? I would imagine this would be paramount to what information they actually need, as well as the coverage options for you. If they are making you uncomfortable, maybe look into a different insurance company. It's smart to call around for rates anyhow.

    Answer by QuinnMae at 10:51 AM on Mar. 26, 2017

  • Basically, if you have any part of your vehicle financed they want to make sure you have full coverage. If you don't have title to prove that you own it outright then they will assume that you have financed it and will require a lender name and a policy that has full coverage in order to protect the lender.

    Answer by QuinnMae at 2:25 PM on Mar. 26, 2017

  • I agree w/ Quinn. Time to shop around. Paying cash for vehicles shouldn't be a new concept to them. Lots of people buy their cars from private sellers for cash, so I don't see why this should be a problem.

    Hope you enjoy your new SUV. What did you get?

    Answer by mrsmom110 at 11:08 AM on Mar. 26, 2017

  • Some friends of ours always pay cash for their vehicles. They never mentioned any problems about it.

    I don't know why the insurance would insist on a lender, maybe they meant the dealer, who could confirm the receipt of cash.

    Answer by Bmat at 9:59 AM on Mar. 26, 2017

  • Because most people nowadays DON'T pay in cash for brand new items like an SUV. They don't have the $40,000-$60,000 just laying around.

    Answer by Rosehawk at 12:14 PM on Mar. 26, 2017