Is Force Placed Auto Insurance Legal in Missouri?


Missouri state flagYes, there are many different lending institutions in the Show Me State that require customers to purchase a certain amount of vehicle protection, and place forced coverage on the automobile if a motorist fails to buy or maintain an adequate policy. Often when coverage is placed by a lender, the expense is added to the cost of a borrower’s loan, and may be significantly more expensive than if a driver purchased the policy on their own. Making the effort to shop around for an inexpensive policy before leasing or purchasing a vehicle can usually save residents money by providing a number of options to choose from. Insurers offer a wide range of prices, and comparing policies that contain an adequate amount of coverage can usually lead to less expensive vehicle protection than having coverage added by a lender.

According to state law, all MO motorists are required to purchase Missouri auto insurance to legally drive. But this only includes liability and uninsured motorist coverage, and many lending institutions require drivers to carry additional protection as well. This additional coverage is designed to protect a lender’s interest in the financed vehicle. Generally, the protection that is commonly added is designed to cover damage specifically to the vehicle in question.

Typically, lenders require residents to purchase comprehensive and collision coverage to pay for a wide range of damages that may be sustained by the automobile. As the name suggests, the collision portion of this addition covers damages sustained in a collision with another automobile, up to the limits of the policy. The comprehensive portion covers incidences that may occur outside of a collision. This includes losses caused by fire, flooding, falling objects, vandalism, theft or animals.

When buying Missouri car insurance that includes comprehensive and collision coverage, residents will need to choose a deductible, which is the amount they will likely pay if the insured vehicle suffers physical damage. The amount that a motorist chooses can have an impact on the overall price of a policy. For example, if a resident chooses a higher deductible, they may have to pay more out of pocket for damages, but will likely have a less expensive policy. A smaller deductible, however, generally coincides with a higher premium.
State of Missouri
To avoid having a lender purchase forced placed coverage, motorists in Missouri are urged to shop around and find an adequately priced policies themselves. Comparing a variety of quotes can allow drivers to take advantage of the price differences that commonly exist between insurers, and buy low cost auto insurance that contains the necessary amount of vehicle protection. To efficiently research policy prices, drivers can compare quotes online to potentially see dozens of sample rates in a short amount of time, and with minimal amounts of personal information.