Q: Can my lending bank add insurance cost to my account for retroactive insurance?
I purchased a used truck in May 2023. As usual, I called the insurance company to add it to my policy on May 17, 2023, the date I purchased the truck. A couple months later, I received a letter from my bank stating that since they didn't receive documentation of insurance on my truck, that they purchased a 6 month policy for $2500 and that they added to my truck loan. The bank said if I send them proof of insurance for the last couple months that they would refund the insurance premium to my account. I thought that should b no problem. I called my insurance company and explained it all. They informed me that I didn't call to add the truck to my account in May like I had thought and that they could not add the insurance retroactively to reflect that. I knew that I had added it but they said I didn't. I could do nothing. The bank finally received the documents for insurance but starting in July. I was refunded $1700. They said I had to pay $800 for 2 months of insurance.
A: A Michigan attorney could advise best, but your question remains open for three weeks. It isn't fully clear what caused the misunderstanding here - a local attorney could probably sort out better after reviewing the file in detail. But a financial institution can require insurance. Good luck
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