Do I need to maintain full coverage auto insurance for the life of my auto loan?
Posted on May 31, 2008 under Insurance Information |I was told by a coworker I can just get liability insurance after one year.
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Insurance Information
I was told by a coworker I can just get liability insurance after one year.
May 31st, 2008 at 7:21 am
That would likely vary depending on the company and the amount remaining on the loan. I would contact the lending company.
May 31st, 2008 at 7:21 am
yes the lender will require full coverage until loan is paid off. check with your lender for sure though..everyone is different
May 31st, 2008 at 7:21 am
If the lender isn't sufficiently covered against loss, he will purchase additional insurance for you at your expense. Its part of most loan contracts.
May 31st, 2008 at 7:21 am
Yes.
May 31st, 2008 at 7:21 am
yes this is required by your lender talk to your lender for specific requirements
May 31st, 2008 at 7:21 am
Yes
May 31st, 2008 at 7:21 am
Check with the lending institution, but in most cases you will need to maintain full coverage.
May 31st, 2008 at 7:21 am
I know in NYS you have to maintain full coverage until the loan is paid off. Even if it is a used car with a loan. After you pay off the loan then drop your insurance to just liability. The bank will come after you if you are in an accident and the car is not fully covered to repair it and you had stop paying your loan.
May 31st, 2008 at 7:21 am
Yes, you need to maintain full coverage auto insurance for the life of your auto loan. This protects the lender in the event you wreck the auto. Read your contract or call your lender….
May 31st, 2008 at 7:21 am
Most lenders (banks) require that you maintain full coverage for the duration of the loan. This protects the lender from losing money in the case of the vehicle being totaled. The lender would receive the insurance money if the borrower did not have money to pay off the loan.
Check with your lender and/or loan documentation for clarification.
May 31st, 2008 at 7:21 am
yes or else you risk holding the bag if you crunch it
May 31st, 2008 at 7:21 am
It all depends in what State that you reside in. I know that in my state, yes you do need to maintain full coverage for the life of your auto loan. Besides it would be the smart thing to do anyways. If you get into in accident and you where found at fault, would you want to pay a loan when the car is totaled and because you do not have full coverage, you cannot fix your own car?
May 31st, 2008 at 7:21 am
The lender will know what coverage you have, as the agency notifies them IMEDIATELY of any changes. If you force them to purchase added insurance, trust me, it will cost you DOUBLE what it would cost if you do it yourself.
May 31st, 2008 at 7:21 am
In many lending contracts, full coverage insurance is required. Also, if you allow your insurance coverage to lapse, the lender may take legal action against you. This often means a repossession of the vehicle.
May 31st, 2008 at 7:21 am
Yes! Without a doubt…