§ 18296 Insurance Cost Collection Allowance

• •A company that lends money for things like cars or houses can charge you for certain types of insurance.
• •This extra insurance cost doesn’t count toward the highest amount they’re normally allowed to charge you.
• •The insurance must be the kind defined in a specific part of the Insurance Code.

You take out a loan to buy a car, and the lender adds insurance to protect the car if it gets damaged.

The lender can charge you for this insurance on top of your loan payments, and this extra cost won’t be counted as part of the usual fees they’re allowed to charge.