Is it mandatory for an insurance company to provide full coverage insurance for a financed car?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Is it mandatory for an insurance company to provide full coverage insurance for a financed car?

I live in WA and my daughter got a new vehicle financed. She called to have the insurance switched from her old car to the new vehicle. She opted for liability only as she didn’t know better. Can the insurance

company sell her liability knowing a financed new car requires full coverage?

Asked on November 8, 2017 under Accident Law, Washington


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

It is NOT the insurer's obligation to make sure that your daughter has the right insurance (e.g. the insurance required by her financing agreement): rather, it is your daughter's obligation. You write that she "opted for liability only"--that means that she, as the insurered the car's owner, and their customer, told them to only provide liability. There was her choice and her right, and the insurer had not duty to sell her more or different insurance than she wanted.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption