Am I required by law to get full coverage on a used vehicle that I am financing, or will my liability plan work?
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UPDATED: Jul 10, 2010
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Insurance Question from Denver, CO
Asked on 07/10/2010
Am I required by law to get full coverage on a used vehicle that I am financing, or will my liability plan work? NULL
Answer given on July 10, 2010
Usually, the lender, not the law, will require you to carry full coverage. As the lien holder, they have a vested interest in you paying them back. If you wreck the car and still have a balance due on the loan, you’ll have to pay that off. so the lien holder usually requires you to have full coverage.
The only thing the law usually requires is liability insurance. It’s not about YOUR vehicle, it’s about the potential damage to other vehicles and property.
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