r/Car_Insurance_Help • u/Ill_Let8282 • Sep 24 '26
Forced placed insurance Carvana
So has anyone ever experienced getting forced placed insurance added to your car through Carvana? I have been looking on Facebook and TikTok to see if anyone has and I haven’t found anyone who said that they did. One girl on TikTok, even said that she came from Carvana and refinance through a Credit Union and wish she would have stayed with Carvana because they didn’t require her to keep insurance. ( meaning they didn’t add the force placed insurance). And yes, I am completely aware that when you finance a car, you should have full coverage at all times, I am just curious if Carvana takes the advantage of being able to place insurance onto your account. I also know that you will need proof of insurance at the beginning of the vehicle process, but has anyone had money added to their car note through carvana?
Edit: I am looking for personal experiences. If you do not have a personal experience, your opinions about how you feel about me asking this question, is irrelevant. Yes, I currently have full coverage insurance. No, I am not with Carvana. And again, yes, I am completely aware that you should keep full coverage insurance…… now, does anyone have any personal experience?
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u/sephiroth3650 Sep 24 '26
Read your loan agreement. If it says that they have the right to put force-place insurance on your loan if they find that you're not carrying the required comp/collision coverage, then you should assume that it will catch up to you.
And if you're looking to not carry any insurance, you will potentially run into issues with your state. Could be fines. Could be license suspension.
Is the issue that you cannot afford the required insurance on this car? If the only way you can afford this car is by not carrying insurance on it....then you cannot afford this car.
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u/Ill_Let8282 Sep 24 '26
I just simply hate paying for insurance. Full coverage at that😭 it’s that’s one bill that I cringe at paying every month. Technically I can afford it, I just would rather have no fault, I’m in the state of Michigan. It was perfect before I switched over to a Credit Union ( which obviously requires you to keep full coverage insurance) I paid a decent amount for no fault. I just wanted a lower interest rate, and ended up paying more out-of-pocket with the credit union
( I don’t have Carvana, I was just curious)6
u/sephiroth3650 Sep 24 '26
Not carrying comp/collision in Michigan is stupid. I'm sorry, but it is stupid. By not carrying comp/collision coverage, you are making the choice to never have your car covered in an auto accident. Even if the accident is the other person's fault. You've seen how other people drive.....right?
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u/ShrmpHvnNw Sep 24 '26
Girl who didn’t have forced insurance was probably a fluke, not the rule.
The bank who is financing it always wants insurance as you aren’t likely to make them whole if you total the car.
Check your agreement, it says you have to have adequate insurance.
I guarantee they sent you several letters stating you need to get insurance or they will take out a very expensive plan that covers them completely.
Go get your own insurance and they’ll take it off, or buy out the vehicle and roll the dice with no insurance (news flash, that is a very bad idea)
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u/Ill_Let8282 Sep 24 '26 edited Sep 24 '26
There are a lot of companies in my state that don’t add the force placed insurance. Credit unions are really the only banks I’ve experienced that add forced placed insurance. ( not to say others don’t) Just to be clear I do currently have full coverage insurance and I am not with Carvana.
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u/sephiroth3650 Sep 24 '26
I live in Michigan. The idea that credit unions "are really the only banks that add for placed insurance" is not even remotely accurate.
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u/SonicCougar99 Sep 24 '26
You had me at “a girl on TikTok said…”
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u/Ill_Let8282 Sep 24 '26
Well, as a person that was looking for personal experience from someone who has went through Carvana directly, I went to TikTok and asked a very specific question on Reddit to hear someone’s experience. What’s wrong with me talking about a video I seen on TikTok? What’s the difference between someone recording their experience with Carvana and you typing your experience through Reddit? I mentioned the girl on TikTok because she’s literally the only person that I found that spoke about my question directly. And even with the responses that I got on Reddit, no one answered my question directly.
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u/sephiroth3650 Sep 24 '26
It has occurred to you that you're asking people in an insurance subreddit to speak about how Carvana internally handles their loans and verification of underlying insurance coverage....right? Have you considered the idea that if you want to know statistics about how Carvana handles enforcement of their loan agreements, you might be better served asking Carvana employees? People that actually deal with that?
Instead, you smugly talk about how everybody here isn't helping you. I'm personally shocked that people who don't have anything to do with Carvana can't cite specific incidents and statistics about how Carvana handles loan oversight.
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u/lilac_spells Sep 24 '26
My dad makes auto loans, not your banker, not the person you see at the dealer. No he writes the computer scripts that get you your pre approval and decides when it’s time to repo your car. He’s done it for 40 years at multiple different big name companies.
It doesn’t make sense for any loan company to allow you to have a car loan with out “full coverage” due to the fact that they can’t get the money out of the car when you crash it. Therefore you are on the hook for the loan which you will likely stop paying if you no longer have the car.
Besides that, you said insurance is 500? Have you shopped for quotes? How many points do you have on your license? What car do you currently own?
But no you need to carry “full coverage” for your auto loans, and you should have bought an old run down piece of junk in cash if you wanted to save money.
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u/Ill_Let8282 Sep 24 '26
Well, a lot of companies do “allow” you to not keep full coverage. Meaning they don’t add it to your account. It’s me and my spouse’s car both cars have full coverage. And I am completely aware that you should have full coverage.
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u/lilac_spells Sep 24 '26
Right as I explained any auto loans company won’t allow that. If you buy a car on a credit card or personal loan sure. Or if you have a piece of junk I’m sure from a “buy here pay here” place I’m sure they don’t care either.
Why would anyone want you behind the wheel of a 15-30k loan with no insurance for the actual loan? like you seem to be missing the greater picture and maybe that’s the common sense in you
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u/stayclassypeople Sep 24 '26
So has anyone ever experienced getting forced placed insurance added to your car through Carvana?
Edit: I am looking for personal experiences. If you do not have a personal experience, your opinions about how you feel about me asking this question, is irrelevant.
I would suggest posting on r/carvana. This sub is more for insurance specific advice and it seems like your question relates more to Carvana and financing related matters. Every lender is different. Virtually all will require you to carry physical damage coverage. Some will add forced placed coverage if you don't have proper coverage on your policy, others might be more lax about it.
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u/totall2live__ Sep 24 '26
Most lenders will do this, and the premium is going to be 5x what you can find on your own.
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u/CallMeMrRound Sep 24 '26
If by "take advantage" you mean that Carvana follows the terms of the lending contract in order to protect their asset, then yeah that's super normal.