This is a question about Car Insurance in Ontario, Canada.

I purchased a car in 2002, and financed it (not leased) through GMAC
(General Motors). I have 24 monthly payments remaining for a total of
around $7,000.

My insurance renews July 15. I have decided that with the high cost of
insurance I would like to purchase just liability insurance. From what
I understand, liability is the minimum insurance necessary by law and
that I am not required to purchase full coverage for my own vehicle.
My insurance broker told me that GM would not be happy if they knew I
did not have full coverage. I understand that they would not be happy.
But not being happy isn?t a reason to violate my rights if there is no
legal reason.

Can they legally force me to purchase full coverage even though
liability is the minimum by law because there is a lien on the car? I
went through my loan agreement and it does not say anything about it.
Furthermore, is it legal for my insurance broker or my insurance
company to share that information with GM without violating my privacy
rights? If it is not part of the loan agreement and it isn?t required
by law then I feel it is none of GMs business. I have no problems
taking on the risk for the cost of the car if something happens (ie:
an accident).

Can someone please tell me what my legal rights are in this case? I
feel like I?m being taken advantage of by the system.

Thank you.

Robert

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Clarification of Question by canadianrobert-ga on 12 Jun 2005 16:39 PDT

For clarification my insurance company is ING.

http://www.ingcanada.com/en/ing-insurance.html

Hi Robert,

Im from Ontario and Id say that you are good.  If there is nothing in
the contract (such as a lien) then you shouldnt have to pay for any
extra insurance if you dont want to.

Your I-broker sounds kind of sketchy.  They could be just trying to
upsell you.  Issurance is practically a commodity, by that I mean
theres a lot of places that you can get the exact same product, for
the same (or even cheaper price).  Call another broker out of the
phone book...they would be more than gald to talk to you and advise.

Im almost positive an Insurance company cant share info with GMAC
without your consent.  Double check your agreement just to make
sure...as that issue should be covered.

Hope that helps.

Read your loan documents. I'm nearly 100% certain there is a clause
that requires you to maintain full-coverage insurance during the
length of the contract.