Insurance on a fianace vehicle

[maplelodge]

Is it a MUST to buy full coverage insurance if I finance a vehicle from Dodge? Anybody know the answer that would be great. Thanks!

[CRX-R]

yes

[Supa Dexta]

Its best to ask them directly.. You may be suprised, get it in writing if you can, and they say you don't...

[ninspeed]

you must get full coverage, you should also get replacement value insurance (43r).. this will save your ass if the car gets written off while you are leasing it.... if you cant afford the insurance, dont buy the new car

[Arthur Dent]

Yes need full coverage.

[tylere]

If the vehicle is financed or leased you USUALLY must have full coverage on the vehicle, doesn’t matter who it is through. I believe there is some exeptions to this though. Think of it this way... If you total your vehicle, then walk away the lender (bank, Dodge, etc) is left with a vehicle that is basically worthless, since the vehicle is their collateral they want that protected. They would not make their money back if they had to re-poses your totaled vehicle. If you look on your insurance papers you will notice it has an area that lists the vehicle lien holders, which is the lender. Any payment from the insurance company goes to the lien holders first, whatever is left over goes to you.

Some people who are not so smart will go finance the car, get full coverage, prove to the lender that the vehicle has the proper coverage then go cancel the additional coverage…. Not such a smart idea…

43R is a very good idea as well; it provides full replacement value for the first 30 months. I am 21 and I pay something like 40 dollars a year for this on my Mazda 3, it is very economical for some additional piece of mind.


=Tyler

[Supa Dexta]

I'm just saying you should ask directly.. I did and they told me I did not (my bank) so I jumped all over that, as it was terribly high at first... And I have read of others having it this way as well... chances are you will have to, bu there is a small chance you may not, in any case you will be resposible for replacing it should it get wrote off/smashed...etc

[maplelodge]

ok sounds good thanks!

[tylere]

I should add, since you are going through dodge you are getting an auto loan. Normally these are secured against the vehicle. If you went in to a bank/credit union and just got a normal loan they would normally secure it against something else. In this case they would likely not require the full coverage.

I also believe down payment amount has some determining factors to the requirements for full coverage.

Either way… If you are getting a brand new vehicle, full coverage will be your friend.

[01RedDX]

.

[ninspeed]

Originally posted by Supa Dexta
I'm just saying you should ask directly.. I did and they told me I did not (my bank) so I jumped all over that, as it was terribly high at first... And I have read of others having it this way as well... chances are you will have to, bu there is a small chance you may not, in any case you will be resposible for replacing it should it get wrote off/smashed...etc

was it a auto loan on a newer car, or higher priced? do you have a house?

[Mangina]

Lol at not being able to afford insurance but financing a car!! What could go wrong?

[drew_goring]

I don't need full coverage on my financed vehicle while it is in storage.

[Supa Dexta]

Originally posted by ninspeed


was it a auto loan on a newer car, or higher priced? do you have a house?

Loan from the bank, for a car with the car as collateral (newish car, few yrs old at the time of purchase)... No house. At first when I asked them if I needed it the woman on the phone said yes, but wasn't sure of herself.. I asked her to go check, she came back (I don't even think she asked anyone) and was like .. unh yeah you need full coverage.. So I put it on, 8months or so went by and I happened to be in the bank again having a meeting, and I asked that guy and he told me no, that I only needed some insurance on it to be legal, that I didn't NEED full coverage, even though the car was against the loan. So anyways, don't just take someones word, get it in writing.. The only thing I did have going for me was a bit of cash in an account, of which I since paid off the car a few yrs early.. So yeah, thats all I know.. It's a difference of 2k a yr to add collision, so I'm taking my chances, and I've dropped it...

[Tik-Tok]

Originally posted by maplelodge
Is it a MUST to buy full coverage insurance if I finance a vehicle from Dodge? Anybody know the answer that would be great. Thanks!

Depends on your finance agreement. It will say on your contract if you do or not.

I assumed I needed full coverage, but come winter, I phoned my bank the girl looked it over and said "No, it's not in your contract"

Which was good since I was storing the car for winter, and only needed fire/theft on it.

BUT, it is a good idea if it's on the road to have full coverage, you wouldn't want to write your brand new car off, with no collision, and end up owing someone $30G for someting you no longer own.

[88CRXGUY]

I've had leased and financed vehicles and the dealers have told me that they will not let me leave with the car until I showed them I had full coverage insurance on the vehcile. I think its a wise idea to get full coverage because you never know what could happen. I'm sure that you don't want something happening to your car and then you haveing to pay out of your own pocket to get it repaired. Also it saves your ass and the banks ass if you total the car. If you don't have full coverage and you total the car I think that the bank or dealer can come after you for damages, I'm sure to do wonders to your credit rating.