A loss payee is a person or entity with a legally secured insurable interest in another's property. This is usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and your policyâs loss payee.
Examples of a loss payee:
Vehicle co-owner or-co signer who has an insurable interest in the property
An individual with whom a financial agreement has been made securing the property as collateral, such as a personal sale or a temporary personal loan
A financial institution like a bank or a finance company who loaned the funds for the purchase