CAR-BUYING QUESTIONS
Do I need full coverage insurance on a financed car?
Almost always. Lenders typically require comprehensive and collision coverage, often with a maximum deductible, to protect the vehicle that secures the loan, and they may be listed as lienholder or loss payee on the policy. Your state also sets minimum liability requirements. Get insurance quotes before you buy, since premiums vary a lot by model and can change what you can comfortably afford.
General information, not legal or financial advice; rules vary by state and lender.Related questions
- Do I need insurance before I drive a new car off the lot?
- What insurance coverage does a lender require on a financed car?
- Should I get an insurance quote before buying a car?
- How do I get insurance on a car I have not bought yet?
- What paperwork do I need when buying a used car from a private seller?
- Do I need a down payment to buy a car?