All states have regulated the minimum required Liability Limits of Auto Insurance within that state. Your lienholders Finance Contract that you signed will determine the amount of your property insurance coverage required to protect their interest in your financed vehicle.
In California, anyway, you need full insurance coverage on a car the whole time it is financed. After its paid off, you can drop a bunch of the coverage and just carry liability.
Yes. Damage could still happen to the vehicle and the loan company or bank will require full coverage.
When you arrange for auto insurance, you have a number of options for the type of coverage you want. Collision repair is one of those options. If the vehicle is financed, collision and comprehensive coverage are required. If coverage exists, refer to the policy for details. www.insurance.com
Florida, like all other state, has set minimum coverage requirements for drivers. This applies to vehicles that are not financed. If the vehicle is financed, additional coverage is required by the state and the lender to cover the value that is financed so that the lender is paid in the event the vehicle is a total loss. You can read about Florida state law regarding insurance here: www.flhsmv.gov/ddl/frfaqgen.html The rate depends on various factors, so your best bet is to contact your current agent to explore your options.
usually you only need full coverage if you are financing or leasing your vehicle.
Broad Form auto coverage is as close as you can get to having no coverage at all. You cannot add physical damage coverage to your policy so you cannot buy this is you have a car financed. The coverage is for the named insured only and every other human on the planet is excluded. If anyone else drives there is no coverage. This is not anything that I as an insurance agent could ever recommend to someone.
The vehicle being towed has to have physical damage coverage itself in order to be covered for damage. A vehicle towing another vehicle does transfer the liability insurance to the trailer or object it is legally towing but the physical damage done to the object being towed does not transfer.
A vehicle may not be covered for the same coverage by more than one company.However, it may be the case that liability coverage is with one insurer and physical damage coverage is with another. This can happen in the instance, for example, of a financed vehicle, where the lender obtains "forced-placed" physical damage coverage on the car to protect its interest in the collateral. The lender may do this if the owner/borrower does not produce proof that he/she has obtained physical damage coverage, despite having obtained liability or other required coverages.
You need to carry full coverage, Liability and Comprehensive and Collision. the finance company wants to make sure that if there is a total loss, they will retrieve the loan amount. Additionally, they want to make sure that the vehicle will get fixed if it is damaged.
Yes they can repo if they catch the insurance lapse. Most financed vehicles have a Full Coverage clause that you signed and agreed to when you contracted to finance the vehicle.
Yes, If your currently insured vehicle is traded in or upgraded then the newly purchased vehicle is automatically covered for the first 30 days with the exact same coverage as the vehicle you traded in. Within these thirty days you are required to notify your insurer of the vehicle change. Failure to notify the company within the required time period can void or nullify coverage on the newly acquired vehicle. Not that if the Newly purchased vehicle is an additional vehicle purchase, meaning it is not substituting or replacing an already insured vehicle, it may not be covered at all until added to your policy. This will vary by your state insurance laws. you have to notify your insurance company and they will transfer it to you until you can take it in to them to see and fill out forms.