Legal Question in Consumer Law in Wisconsin

Fine print counts in purchase agreements loan papers, or for any other sort of contracts, including those for vehicle sales. Every one that I have ever seen from a professional lender requires the borrower to keep the vehicle insured until the loan is paid off, and gives the lender the right to "force place" insurance if your private insurance is canceled (aside from the fact that WI law now requires all drivers to have insurance). That means comprehensive coverage as well as liability (aka "collision" coverage).$1500 per year is cheaper than many forced placed insurance bills that I have seen, and it typically means that the lender is self insuring, so they do not need to pay this amount to any outside insurance company. As always, the lender simply charges you more as they feel that their level if risk increases, a so called "risk premium" which is standard operating procedure in either insurance or lending. You therefore need to get private insurance or face repossession of your vehicle, and this forced placed insurance costs will still be added to your bill even after the vehicle is repossessed, which is known as a deficiency judgment. Remember that I am only guessing here because I have not seen your paperwork, so have a private consultation with a lawyer for review of the docs before you act on my suggestions.

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