 TITLE: How Does Repossession Work? CONTENT: When Can a Vehicle Repossession Happen?\n---------------------------------------\nRepossession can occur as soon as you default on repayment. Your loan contract will define what the lender considers a loan default, but it can be triggered by missing just one payment.\nThough a loan contract may give a lender the right to take your car away after you default, the lender will typically will alert you of your missed payments and attempt to collect payment prior to repossessing the vehicle.\nWhen a vehicle owner is in default and is non-responsive to the lender's attempts to remedy the missed payments, the creditor may choose to repossess the vehicle. In most states, the law doesn't require lenders to provide advance notice of a repossession, which means they can come and take your vehicle at any time once you're in default.\nRepossession could also occur as a result of not having proper insurance for your vehicle. Though at least basic auto insurance is required in all states, if you allow your insurance policy to lapse, your lender may consider this a reason to repossess your car. Lenders have an interest in protecting their investments, and since they hold your vehicle as collateral for your loan, a car without insurance poses potential risk. END