Quick insurance question

[funkedelic2]

If you buy a vehicle and you owe money to either the dealership or bank you have a lien on the vehicle which requires you to put full coverage on that vehicle correct?

Do you have the option of putting parking insurance if you aren't driving it for a period of time or are you required to continueously have the same amount of insurance until its paid off?

[syeve]

I believe only a leased vehicle has minimum insurance requirements. Of course I could be wrong.

[meowmeow]

Leased or Financed vehicles both require full coverage. Most lenders are OK with parking insurance but it never hurts to double check! Call your lein holder to double check.

[Tik-Tok]

Originally posted by meowmeow
Leased or Financed vehicles both require full coverage.

Actually, it depends on the financial agreement.

My new car purchase financing through Scotia, had NO insurance clauses on it.

There was even a little box that said "Insurance requirements" and typed in it "None"

[Xtrema]

Lease always require full coverage because the vehicle is owned by leasing company and they want to make sure it's covered.

Finance ownership is on you. You will owe the money to your creditor no matter what your car's condition is in, you creditor can care less of what insurance you got on the car.

Now I won't be surprised if some creditors require insurance even for finance to make sure they can recover $ from you.

[Masked Bandit]

Originally posted by Tik-Tok


Actually, it depends on the financial agreement.

My new car purchase financing through Scotia, had NO insurance clauses on it.

There was even a little box that said "Insurance requirements" and typed in it "None"


This.


It's up to the "man" lending you the money. All lease agreements will make in mandatory you carry full coverage and most loans (not all) as well however I've had clients get letters from their leasing company allowing them to reduce coverage to comp only (fire / theft).