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Insurance lapse costly if car is stolen

Dear Terry,
My daughter's car was recently stolen. She still had a year of payments to make to the finance company. I found out she only had liability and no comprehensive insurance. Therefore, she still owes the remaining balance to the finance company. Is there a way to negotiate the balance lower so she can pay if off?
-- Sharon

Dear Sharon,
There's likely no way you can reduce the amount owed without harming your daughter's credit rating. Depending on the terms of the loan, she could have been declared in default on the loan by letting the comprehensive insurance lapse.


Here are this week's questions:
Will hybrid lease payments rise soon?
Should I pay cash for a new car?
How can my daughter lower car payment balance?
Can I renegotiate after signing a contract?
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