This article covers how vehicle repossession works in New York state and what your rights are as a New Yorker. 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. What should I do with my insurance if my car is repossessed? There are only two things that give a loan company the right to repossess a vehicle: missing payments and allowing the insurance to lapse. To file a claim for benefits on credit insurance, ask your lender for a claim form and instructions on how to complete. DEBTOR. I understand that the car company and insurance are demanding payment for missed payments while your vehicle was in the shop. Before submitting a complaint, check out our FAQ page for potential answers. If your car is up for repossession, contact your lender immediately to discuss your situation. The complaint must be completely filled out and filed in the District Court of the county where the property is located.