Nice vehicle. But is it insured?
Congratulations on your new wheels! Thanks for choosing STCU for your financing.
As the vehicle owner, it is your responsibility to provide "proof of insurance" to the credit union. (This is not the same thing as the little proof of insurance card drivers are required to show state patrol or other authorities if stopped.)
Proof of insurance is the legal documentation required by your STCU loan agreement to show that you have fully insured your vehicle against theft or damage. It must come from your insurance agent or insurance company.
You should have recently received our "MyLoanInsurance" welcome letter, noting that under the terms of your STCU loan, your vehicle must be fully insured within 30 days after it was purchased. After 30 days, you must provide insurance on the vehilcle with no lapse in coverage or risk violating your loan agreement.
If you do not provide proof of insurance before the 30-day deadline, STCU will purchase insurance for you at a premium that often is more expensive than what you could purchase yourself. That's why we highly recommend you secure your own insurance!
How do I submit proof of insurance?
To avoid the high cost of insurance we are forced to buy for you, there are several options for submitting your proof of insurance. Here are the two easiest ways to do it before your 30-day deadline or at any time that your vehicle insurance policy might lapse:
- Ask your insurance agent to immediately provide proof of insurance. A reliable agent can provide the proof of insurance in a week or less. If it's easier, they can use this web page and the reference number and personal identification number (PIN) you provide (see below) to upload your binder. Simply click on the purple "Submit insurance" button.
- Submit your proof of insurance online. After clicking on the purple "Submit insurance" button on this page, you'll be asked for the reference number and personal identification number (PIN) found in your "MyLoanInsurance" welcome letter. Your PIN is good for 90 days. If your letter is unavailable, call (866) 600-8767.
Other options for submitting proof of insurance include:
- Ask your agent to email your proof of insurance binder to firstname.lastname@example.org. Email attachments must be in one of these formats: PDF, PNG, TIF, or JPG.
- Ask your agent to fax your proof of insurance binder to (877) 401-2172.
- If there's time, mail a copy of your binder to STCU, P.O. Box 924515, Fort Worth, TX 76124.
What is the proof of insurance binder?
A proof of insurance binder proves to STCU — serving a your lender, holding the title of your vehicle until your loan is paid off — that your vehicle is fully insured against theft or damage. The binder includes the following documentation:
- Evidence that STCU, 1620 N. Signal Drive, Liberty Lake, WA 99019, is the lienholder/loss payee.
- Proof that you have purchased comprehensive and collision coverage, with deductibles of $1,000 or less, on the vehicle.
- Evidence that your vehicle, as collateral against the loan, is exactly as listed on your loan document.
- Your policy number, policy period, and the insurance provider's name.
If you have any questions about proof of insurance, please call (866) 600-8767.
Frequently asked questions.
Can I use my insurance card as proof?
No. The little insurance card issued by your insurance company is not legally recognized as proof of insurance. Ask your insurance agent to complete the steps described above to provide proof of insurance directly to STCU.
What happens if I do not provide proof of insurance?
STCU gives you 30 days from the time you purchase the vehicle to provide proof of insurance. On the 60th day after your vehicle purchase, STCU will purchase an insurance policy for your vehicle at a premium that typically is far more expensive than what you could buy for yourself.
You will be required to pay for this lender-placed insurance policy, also known as "collateral protection insurance," beginning on the 31st day after your purchase of the vehicle. It is your responsibility to pay for the lender-placed policy, no matter how many days of coverage it provides, and STCU could also charge you for violating the loan agreement by letting your insurance lapse. Please note that an insurance policy purchased for you provides no coverage for damages or other protection to you as the borrower.
What happens if I let my vehicle insurance lapse?
As soon as STCU is notified that your policy has lapsed, we will purchase insurance for the vehicle at a premium that typically is far more expensive than what you could buy for yourself. There is no grace period for lapsed insurance, and you will be charged the insurance premium for every day that coverages is provided. Under terms of the loan agreement, STCU also could charge you for letting your insurance expire.
Why is proof of insurance required?
You may be driving the vehicle, but STCU holds ownership title to it until you pay off your loan. Your vehicle is the collateral — the asset you deeded to us — to provide security, or the assurance, that you plan to repay your loan. To protect that asset, STCU requires borrowers to provide proof of insurance within 30 days after you purchase the vehicle. After 30 days, if you have not purchased your own insurance policy, we will purchase one for you that may be more expensive than what you could buy yourself.
Insurance is being purchased for me. What should I do?
If your insurance agent recently provided STCU with proof of insurance, contact STCU immediately to cancel the insurance we purchased for you. However, you will be responsible to pay all premiums applied to the time the policy insured your vehicle.
If you have yet to provide proof of insurance to STCU, we recommend that you immediately purchase insurance from a qualified insurer to replace the policy we purchased for you. Ask your agent to provide proof of insurance to STCU, as described above. When we receive the proof of insurance from your agent or company, we will cancel the policy that was purchased for you. However, you will still be responsible to pay all premiums applied to the time the policy insured your vehicle.
Without proof of insurance, as described above, STCU will not cancel the policy that was purchased for you. You will be required to pay for this policy until you purchase your own vehicle insurance and provide a proof of insurance binder from your insurance company.