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On the insurance for my financed or leased vehicle, why do you need to be listed as "Lienholder" or "Loss Payee"?

We have a vested interest in your vehicle.
As the lienholder, we have a security interest in your vehicle and on any insurance claims that may be paid during the term of your contract. If you leased your vehicle, a leasing company is the owner of a leased vehicle, and is listed as the Loss Payee on your policy. This is to ensure the proceeds from insurance settlements are used to repair damages to the vehicle.