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What happens to your car loan if you lose your license?
"I recently lost my driver's license and now I can't drive the vehicle I financed.
What happens to the car loan itself?"
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Losing your driver’s license shouldn’t have any impact on your car loan at all. Your name is still on the loan and regardless of whether or not you can drive the vehicle, you still own it and are legally required to keep paying your loan.
Your
car insurance
might be a different story if you get a DUI. If you had your license revoked for other reasons, your insurer may or may not cancel your policy. However, your car will still need to be insured as part of the stipulations of your loan. If you have a spouse or family member, you might want to add them to your policy so they can drive you to work or wherever you need to go.”
View full answer
- Gregory R.
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