Friek

Do you need to have full coverage if you finanace the vehicle?

ack154

iTrader: (7)

Depends on the bank... but I'm pretty sure that most financial institutions require full coverage to give you the loan.

markbvt

I've never heard of a bank that doesn't require full coverage when financing.

And why wouldn't you want full coverage on a nice shiny new car? It doesn't cost that much more, and if you get in an accident, you won't be screwed.

--mark

INDY

I've never known a bank to leave themselves exposed for the cost of the car. You will need full coverage as long as it is financed. Once paid off, you can do whatever you want.

Be aware that the insurance company will contact the bank if you cancel the full coverage. The bank may not say anything until your last payment, but, they will hit you with a bill for insurance that they provided far greater than it would have cost you to keep the insurance in the first place. (A several thousand dollar bill is not unusual)

And, since they hold the title, they will not release it until the bill is paid.

Friek

yup... It's confirmed I needed full coverage