Most financial institutes that make car loans require you to have full coverage on the automobile. If you are unsure if your dealership requires this look over your loan paperwork because it is most likely included as part documents you signed. The paperwork probably spells out what the consequences are if you do not get or continue the coverage during the life of the loan. It is most likely they will have grounds to repossess the car if they find out the insurance is not in place or place coverage on your behalf and charge you for it.

Full coverage means carrying comprehensive and collision on the vehicle. Having these coverages cover the vehicle, up to its actual cash value, and thus will allow the lienholder to recoup their losses if you total the vehicle. Without this coverage if you were to total the car you still would have to pay off the loan to the dealership even if you no longer had a car to drive due to the accident damage.

Visit our website to get a quote on comprehensive and collision coverage.