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

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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

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.


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