Most financed cars are required to carry full coverage all year round until the loan is paid off per the lender.
Do you have to have comprehensive and collision on a financed car?
Comprehensive and collision are optional coverages, as no state requires you to carry either of them. If you’re leasing or financing your vehicle, the financial company will demand you carry comp and collision until the car is paid off or turned in.
What happens if you don’t have insurance on a financed car?
Most lenders won’t repossess a car when the car isn’t insured. This means that the borrower can keep the car but they will pay more each month on the loan because a fee for lender insurance has been added to the balance. Don’t pay more to finance a car because you don’t have insurance.
What is considered full coverage on a car?
What does full coverage insurance cover. A typical full coverage policy (liability, comprehensive and collision, uninsured motorist and medical coverage) should cover: The damage you do to others, up to your liability limits.
Photo in the article by “Mount Pleasant Granary”