Best Answer

I believe it depends on the state, but as far as I know, if you have to have full coverage on a financed car, it doesn't matter where it's financed. If you still have questions, ask your insurance person, they'll know the answer.

User Avatar

Wiki User

โˆ™ 2015-07-15 19:21:40
This answer is:
User Avatar

Add your answer:

Earn +5 pts
Q: If your car is financed through a dealer do you have to have full coverage insurance?
Write your answer...

Related Questions

Do you need full coverage insurance on a financed motorcycle in las Vegas?

yuo. financed motorcycle always need full coverage . i bought my gsxr finanaced and had to get full coverage . The dealer ship requires u to get it -_-

Is it better to be financed for an auto loan through the dealer or through a source like a credit union?

It is often better to be through an insurance agency, often times a dealer will provide you with an insurance agent.

If a car is financed through a used car dealership do you have to have full coverage insurance?

If the dealer doesn't require it, probably not, but you have to decide if you want to take the chance of continuing to make payments on a car that you can't use after an accident.

Who sells gap insurance?

GAP insurance is designed to cover the difference between what you owe on a financed (or leased) vehicle and the actual cash value that is paid by an insurer if the car is a total loss. Generally, GAP coverage is available through the car dealer or the finance company that finances the car.yes

Possible to get car dealer insurance with bad driving record I have 4 speeding tickets on my record. None are too serious and a lot of Car dealer insurance companies are denying coverage?

You need to call An insurance Agent that specializes in High Risk Auto Insurance to find coverage. An Auto Dealer is the worst and most expensive place you can ever buy insurance. You should never buy your auto insurance from a car dealer or a bank teller, They are not licensed, trained or experienced in the placement of Insurance Risks.

Does car insurance cover car payments if you lose your job?

No, auto insurance does not offer this type of coverage. You generally have the option of purchasing this coverage from the auto dealer when you finance the automobile. Sometimes you may be able to purchase it if you are a member of a credit union or such. You might even call the finance company who financed the vehicle and see if it's possible to add it if that is your desire. Read the terms as these coverage are often times overpriced and have lots of small print.

What major insurance companies provide coverage on Audis?

"The major insurance companies that provide coverage on Audis are; American Family Insurance, State Farm, and Progressive. Other insurance companies are available directly from the dealer at time of purchase from the lender."

What if the car dealer give you a car without proper insurance?

I don't really understand your question. The car dealer is not responsible for providing your auto insurance. It is your responsibility to obtain the proper insurance coverage for your vehicle and your situation.

Does the dealer you buy the car from have some type of insurance coverage?

When you test drive it, yes. Once you commit to buy it, insurance is your responsibility.

When purchasing a car if the owner already has full coverage on a trade in do the owner need gap insurance?

Firstly, talk with your insurance agent before signing for the new car. Dealers will sell you GAP coverage whether you need it or not and their GAP is a very expensive coverage that is paid up front and then financed so you pay even more. The only time you need GAP coverage is when the financed balance is more than the value of the car. If you are trading in another car you may have a lower balance than the book value or the new car. In any case you can purchase GAP from your agent and cancel it after a year or whenever you feel that the loan balance is lower than the value of the car. If you buy from a dealer you pay for the life of the loan plus interest.

How long does dealer have to keep insurance on vehicles after bought?

a dealer should have a bond. The coverage on the vehicle is like having a liability policy. If the dealer was driving the car and had an at fault accident, he will have to pay for repairs on his vehicle and the bond will cover the other persons car. Once you buy a car from a dealer, you are responsible for purchasing insurance for the vehicle, the dealer is no longer liable. In fact, the dealer should require that you have insurance before you drive the vehicle off the lot.

What is the maximum charge for gap insurance through auto dealers in CT?

I'm sorry I don't know if there is a legal maximum that auto dealers can charge for gap insurance. I do know that you need to speak with your auto insurance agent prior to purchasing gap coverage. When a dealer sells you gap coverage what they do is prepay the entire premium for the term of the loan and add that into the amount financed. After that you are charged whatever interest rate you pay on the vehicle. The auto dealer is paid a large commission for selling this gap coverage and receive all their money up front. Most auto insurance companies offer the same coverage for a very small premium that is simply an endorsement to be added onto your current policy. I think mine is about $6.50 for a six month period. You only need gap coverage for the first couple of years that you own a new car. GAP pays for the difference between the value of the car and the amount owed on the loan. After a couple of years the falling amount owed on the loan becomes less than the value of the car. If you purchase from the dealer you are prepaying for the entire 5 or 6 year time of the loan period.

Can insurance cover more than the used car is valued at Example Paid cash 22500 for vehicle with ttl it came to about 24000 Insurance is saying they can only cover 21200?

Insurance will pay to repair, replace, or pay the actual cash value of the vehicle at the option of the insurance company. On a new vehicle that is financed I always recommend that the client purchase GAP coverage. GAP coverage pays the difference in the actual cash value of the vehicle and the balance of the loan or lease payoff. This is a good idea especially in the first year or so after the vehicle is purchased. The first year a new vehicle depreciates so much that the GAP coverage can really help out. The cost of GAP insurance from you insurance company is much less than purchasing it from the dealer.

Can you get gap insurance in Georgia after you buy your car?

Sure. You are much better off to get GAP insurance from your insurance company than by buying it from the dealer. If you buy from the dealer you will pay lots of money for the insurance plus you pay for GAP insurance for the life of the loan in advance then pay interest on it as it is financed in your loan. GAP insurance is coverage for the difference in the actual cash value of the vehicle and the amount owed on the vehicle. Reason shows that you will only be upside down in your loan when you first buy a new car because the value decrease fast the first year while the loan doesn't reduce as fast. You can purchase GAP coverage from your insurance company for a few dollars ($5-10) for a policy period and when the loan balance drops below the value of the car you can drop it. Say the first two years of a five year loan you owe more than the value though it is probably less. For two years you may pay $40 for the coverage from an insurance company then drop the coverage. From the dealer you paid $850 plus interest and you can't cancel it even though it will not pay off anything after the first two years. To answer your question, most insurance companies will let you add GAP coverage for the first 6 months after you add the car to your policy.

What insurance company offers the best extended car warranty?

Different insurance companies offer different plans. You should check various insurance companies in your area, and then ask an auto dealer what they would recommend for the best coverage.

U do not have car insurance now you are going to buy a car at a dealership tomorrow can you buy car insurance 2night so you can drive away in your newer car 2morrow not knowing which car U will buy?

No. If you've got a few cars in mind it would be best to get a quote from an insurance company on the possible cars you may buy. Then before you leave with the car call the insurance company and make a payment for the car insurance for the vehicle you actually bought. If the vehicle is being financed or leased, the dealer will not allow you to leave with out proof of the coverage being faxed over.

Do you need to show proof of insurance at a car dealership when buying a used car?

Absolutely. Even if you pay cash for the vehicle you will need to prove that you have liability insurance in order to legally drive off the lot. If you are financing the vehicle you will have to show that you have liability and physical damage coverage before driving off the lot. The dealer will contact your insurance agent to verify that the coverage is in force and will add the vehicle to your policy with the coverage that they require and that you want.

What credit score do you need to get a new car financed?

It varies according to the dealer.

Can you return a used car purchased from a dealer?

A car bought from a dealer is usually financed by a bank they want there money not the car back

What is the penalty if you have a gap from time you purchase a car from a dealer until you obtain auto insurance?

Temporary Dealer Gap insurance is considered the same as having no insurance at all. Most companies don't recognize dealer gap insurance because they are only excess secondary coverage policies, No Liability coverage is generally included in them. Generally if you have a lapse of 30 days or more, or if you have had continuous coverage for less than 6 months, then you will pay 5 to 10 percent more on premium. Beware of GAP Insurance, I've seen more than a few people who got burned on these after they discovered the gap only covered a portion of the vehicle and offered no liability coverage for the driver. * As a Broker, I can tell you it really depends on: the length of time, WHY the gap, your past record, and the individual underwriting policy for each insurer. Be SURE to tell any prospective broker/company of this gap or you could be without in the end!

Can a CAR dealer repo a car for no insurance?

Usually the lender, not the dealer, will just tack it onto your payments, but yes, you probably signed an agreement to insure contract. However, they do not want the car back, so, most of them will just add it, then ad it to your payment. The dealer, unless it was a buy here, pay here, has nothing to do with the car, once it is financed. The bank owns it, once they finance it.AnswerYep, that's the way it works. Finance Company always requires Full Coverage Auto Insurance until the car is paid off. It's in your finance contract After pay off you can carry just liability if you like.

If you buy a car for 28000 and pay 800 down in addition to the added fees are you financed on the remaining 27200?

Not Exactly. You Will Have To Carry Life Insurance, Probably Some Type Of Other Insurance, Plus Taxes, Filing Fees, Ect. Check Into It With You Dealer And Bank. Good Luck If you mean financed for the loan balance, that would depend upon whether or not the borrower qualifies for the loan amount, based on credit rating, income, etc. The buyer will be required to pay out of pocket, sales tax, licensing fees (registration, titling, etc.) and carry full insurance coverage until the vehicle is paid for, those are costs that are not included in the purchasing contract

What is it called when a car dealer gives the bank false information about a car in order to get it financed?


Do brakes get paid by your car insurance or no?

Brakes may or not be paid by your insurance or dealer depending on the company and the warranty in which your car is under. Consult dealer or insurance to verify.

If you have no insurance and are buying a new car how do you buy insurance without knowing what car you're buying?

It should be possible to set up a new policy at the same time you buy the car. You may have a day delay in being able to take the car home from the dealer. Be very careful about dealer selected auto insurance as it may not include liability coverage. This really shouldn't be too difficult to do.