Looking for Minneapolis Auto Insurance

Have you noticed the term ‘loss payee’ on your Minneapolis auto insurance policy and wondered what it meant? It literally means in the event your car becomes a loss, for example if it were stolen or totaled, the insurance payout goes to the person or financial institution named on your insurance policy as the loss payee.

Many vehicles are purchased with funds borrowed from a financial institution and you agree to pay them regular amounts until the money owing is paid back. Under these circumstances, the money lender usually makes it a condition of the loan that you take out enough insurance coverage to pay back the loan if something happens to the vehicle. In order for this to work efficiently, the money lender needs to be named on the policy so the insurance company knows who to send the compensation funds to.

Of course, that’s a basic explanation of loss payee and typically the agreement between the money lender and the vehicle buyer covers every contingency that may affect the vehicle.

Loss payee is about protecting the interests of the lender as well as safeguarding your vehicle. Your Minneapolis auto insurance agent will be able to assist you with any further information on insurance terminology and coverage options.

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