Am I required to renew the insurance of my 4 year old car still under car loan?

**kamoteboy911** · December 7th, 2017 09:06 PM

I have a 4 year old car that I loaned from BDO for 5 years.
I don't want to get insurance for my car anymore since the participation fee will be 30%. But I still get mail from BDO that I am required to get insurance for the car.
Is it really true?

**cast_no_shadow** · December 7th, 2017 09:12 PM

Of course the bank technically owns the car, imagine the car got stolen or totaled.

You will still pay the bank kahit wala na sayo yung car compared if insured siya.

Yan ba yung “free 1st year insurance?”

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**glenn_duke** · December 7th, 2017 10:02 PM

Originally Posted by kamoteboy911

I have a 4 year old car that I loaned from BDO for 5 years.
I don't want to get insurance for my car anymore since the participation fee will be 30%. But I still get mail from BDO that I am required to get insurance for the car.
Is it really true?

Yes you have to, if your loan condition is tied to BDO insurance , then BDO automatically renew your insurance every year and bill you for it.
If not, then BDO will ask you for your insurance , if you fail to provide one 7 days before your current insurance expire then they will automatically renew it with their own insurance and bill you.

**benru3tps** · December 7th, 2017 10:57 PM

Originally Posted by glenn_duke

Yes you have to, if your loan condition is tied to BDO insurance , then BDO automatically renew your insurance every year and bill you for it.
If not, then BDO will ask you for your insurance , if you fail to provide one 7 days before your current insurance expire then they will automatically renew it with their own insurance and bill you.

I am selling my 4yr old car i got thru bdo car loan and I didnt renew the insurance from the Casa. Once I finalize a buyer, I will fully pay the loan asap and have the car transferred to the buyer instead of me. Will there be a problem during payment&transfer since the car doesnt have a current insurance?

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**cast_no_shadow** · December 7th, 2017 11:01 PM

Originally Posted by benru3tps

I am selling my 4yr old car i got thru bdo car loan and I didnt renew the insurance from the Casa. Once I finalize a buyer, I will fully pay the loan asap and have the car transferred to the buyer instead of me. Will there be a problem during payment&transfer since the car doesnt have a current insurance?

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Nirenew na nila yan, like what posted above the bank will bill you for the auto renewal.

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**glenn_duke** · December 7th, 2017 11:16 PM

Originally Posted by benru3tps

I am selling my 4yr old car i got thru bdo car loan and I didnt renew the insurance from the Casa. Once I finalize a buyer, I will fully pay the loan asap and have the car transferred to the buyer instead of me. Will there be a problem during payment&transfer since the car doesnt have a current insurance?

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I assume the casa insurance was your current insurance. If you didn't renew your insurance with the casa, BDO will ask for it, if you fail to submit a new insurance to BDO, they will automatically renew your insurance with their insurance firm the very day your current insurance expires. If you decided to sell your car , and pay the remaining balance to BDO, you will find that the cost of insurance renewal is part of your remaining balance to pay.

Remaining Balance+Unpaid insurance+ Processing Fee (4k?) = Total Balance Payable

If you sell your car and finished all transaction before your current insurance expires then you only have to pay BDO the remaining balance plus processing etc, penalties.

BDO will transfer the OR/CR to your name, but you can ask the BDO liason if he can arrange the transfer of OR/CR from your name to your buyer, of course with extra under the table cost.

**ntlogin** · December 7th, 2017 11:34 PM

Originally Posted by glenn_duke

BDO will transfer the OR/CR to your name, but you can ask the BDO liason if he can arrange the transfer of OR/CR from your name to your buyer, of course with extra under the table cost.

The CR is already under his name but with annotation that it is encumbered to BDO.

Just to add, to have a clean registration before selling, current owner should first get the cancellation of chattel mortgage from the bank (usually 15 banking days after full payment), then have the registry of deeds (usually indicate what office to submit) acknowledge the cancellation. After that, you need to submit the acknowledge cancellation of chattel of mortgage together with the CR and latest Or to the LTO office where the dealer registered the car (also indicated in the release papers) to take out the encumbrance in the CR.

**Calistro** · December 7th, 2017 11:56 PM

Does it really need to be where the dealer registered the car, to take out the enumberance in the CR? Thanks

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**yapoy86** · December 8th, 2017 12:00 AM

Originally Posted by Calistro

Does it really need to be where the dealer registered the car, to take out the enumberance in the CR? Thanks

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Yes. Because the physical MV file is with the LTO branch where your car was first registered

**Calistro** · December 8th, 2017 12:03 AM

Originally Posted by yapoy86

Yes. Because the physical MV file is with the LTO branch where your car was first registered

Crap. I feel bad for the guy whom I sold my old car to. He thought it can be done in any LTO branch so we parted with him having the cancellation of mortgage. Guy's from Batangas and needs to go to LTO Taguig.