Question Details:Unbeknownst to me, I have been driving without collision coverage. So when I hit an interstate wall (no other vehicles were involved), my insurance company denied the claim. I've been told that, because my car is not paid off, the bank that is holding my title covers collision claims. Is this true?
No, it is not true as a general matter: the bank that loaned you money or financed your car has a security interest in your car but is not your insurer. It is not obligated to provide collision coverage, and, furthermore, should not have been able to put such coverage on your car without your knowledge or consent. You can certainly inquire of the bank if they have any collision coverage (though if they do, it would likely be for their benefit, not yours--e.g. to pay off the loan if the car is totalled), but there is no particular reason to believe they have provided this coverage for you.