Drive Now Insurance Scam Phoenix Arizona
I purchased a 2002 nissan altima 4dr sedan from drive now on van buren and 22nd avenue. This is my first car so of course I was more excited then ever. The guy told me he was giving me an amazing deal on the car. Listed at 10,995 they removed 2,000 and listed it at 8,000. This left me to put 1000 down on the car (which wasnt paid in full it was given in increments of 500 upfront and 500 a few days or a week later. They informed me I couldnt drive off of the lot without insurance. Since it was my first car I didnt have insurance, I purchased their insurance to be on the "safe" side, or so I thought. So at an additional 90$ I was "insured." Now 4-6 months later after an accident I find that the insurance I have is actually illegal for me to drive on the road in the state of Arizona with. Which is confusing to me because I feel that should be illegal for them to sell that kind of insurance. Im a single mother struggling to raise my 2y.o. son. In between jobs and currently staying with family and friends. I was required to pay a 500$ deductible above my regular car payment. After this accident ive been told that yes my "insurance" is illegal and I pay 84$ a month. My account is now 21days past due and theres nothing they can do they tell me about owing 1500 in one month. Why did I have to pay a deductible if im paying 84$ a month? I need help. My car is very important to me but this isnt right.
2 Updates & Rebuttals
Jim
Florida,USA
Nothing Unusual
#3Consumer Comment
Sun, May 03, 2015
I did some checking regarding the Arizona insurance requirements in regards to motor vehicle owners and nothing appears to be unusual. Actually, it seems pretty much straight forward with requirements very similar to other states. You can do a similar search and see a very good Q and A page.
I understand how the subject of insurance can be about as boring as the reading of a telephone book but as long as you own your car, you're going to need to deal with it. I would suggest you do what most people won't do and learn about it so that you won't be taken and even more important, you don't become UNDER INSURED.
Keep in mind, when you finance a car, it is a requirement of the lender you carry collision and comprehension as a condition of financing. This is not a scam...its a means of protecting their interest in the car...meaning as long as you owe some amount of the car, their "guarantee" you will pay, or else, is the car itself. If you fail to pay, they get some of their money by a repo and resale.
You might also do some checking on your own for better prices of insurance from an insurance agent. It might be lower. However, you still must have that insurance meet the requirements of the loan. As for the deductable, as Robert may have already said, it comes in amounts and that amount is what you pay. If you agree to go with a $1000 deductable, that's what you will pay in case of some type of loss. In such a case, the monthly insurance cost will be lower because you are assuming more of a potential loss. The amount of the deductable however, is limited by the lender's contract you signed.
Robert
Irvine,California,
USA
Here is some information for you.
#3Consumer Comment
Tue, March 24, 2015
First of all, I highly doubt that this insurance you bought was "illegal". As there are other things in your report that seem like you may be a bit confused. Who told you it was illegal, and why did they say that? IF your insurance is truly illegal...contact the State Insurance Commissioner and file a complaint. Not only would there be a chance you would get your money back, but the company and the person that sold it to you could be in some very serious trouble.
But temper that with the feeling that you may be confused due to the statements you make about your $500 deductible.
When you purchase insurance you are given the option to choose various dedictibles, $500 is actually fairly standard. However, they usually go from about $250 to $1000. The lower the deductible the higher your insurance premium will be. Now, what is this deductible. This is the amount YOU are responsible for in case you get into an accident and your insurance needs to pay a claim. So for example if you had $2000 in damages, you would pay $500 and your insurance would pay the remaining $1500.
There is one other part, the coverage amounts. Every State as a minimum amount of insurance you must "carry"(purchase). For example a minimum of $10,000 in liabilty. If you have insurance that does not meet the state minimum, then yes that could be illegal. As with the deductible, the amount of liability you have effects your rate. Where the more liability coverage the higher the rate. So you will pay more for $100,000 than you will $10,000. But this is also bad to carry the minimum because if you have $12,000 in damage and only have $10,000 in liability...YOU would again be responsible for the remaining $2,000.
Yes, this is what your $84/month was covering and you would have this same thing with any other insurance company.
Unfortunatly for you, when you got the car you signed all of the documents stating that you understood everything you were signing. Which apparently does not appear to be the case.