Why do I need to contact Spencer Insurance when I pay off the loan on my car or pay off my mortgage?
Mortgagees and Lienholders have rights under your auto and homeowner’s policies. In the case of a claim the lienholder on your car wants to make sure you repaired the car. Likewise, your mortgage company wants to make sure your house was repaired after a claim.
If you have a claim, your insurance company sends the check to the named insured and that check is payable to both the named insured and the lienholder/mortgage
company. This is no longer necessary if you pay off your loan.
Many times our agency finds out the loan has been paid off after the check goes to our client. This creates a delay in our client receiving their payment as they need to get the
previous lienholder or mortgagee to endorse the check or have the check reissued.
Don’t let this happen to you. Notify us immediately when you pay off your car loan or mortgage.
For tips on how to save money on your car and homeonwer’s insurance go to our website at https://spencerinsurance.com/resources.html.