This article covers how vehicle repossession works in New York state and what your rights are as a New Yorker. Learn about repossession laws from the NYC Bar Legal Referral Service.Find an attorney in New York. If you don't make your car payments on time, your lender might have the right to take your car without going to court or telling you first. Question: My car repossessed for late payment and I don't have insurance on the car as of now. I have made my payment to release my car. The court found that a lender who repossesses a vehicle before a borrower files for bankruptcy is not in violation of the "exercise control" provision. The Consumer Protection Lawyer can help with your repossession issue where the bank placed insurance on your vehicle without your knowledge. What should I do with my insurance if my car is repossessed? And if so, have you contact the insurance company about it?