The lender will want you to have full-coverage car insurance for the financed car to protect your investment. Otherwise, if the car is damaged or wrecked, the lender will have to ask you for the money to repair or replace it, which is much more difficult than making the insurance company pay for it. You should purchase car insurance with full coverage when you initially finance the vehicle. If you choose to switch to liability insurance while you still owe money for the car, you're in violation of the contract with your lender.
That means they're legally allowed to pay off your auto loan and take your vehicle away from you. If you're at fault for a car accident, your liability insurance pays for repairs to the other driver's car and will likely cover the doctor's bills if you're injured. If you took out coverage for uninsured drivers in your car insurance policy, this coverage should be included to help cover some of the costs incurred by the accident. You should cancel your car's full coverage insurance when the cost of the insurance is equal to or greater than the potential payment, in the event of a covered event.
Getting an auto insurance policy for a financed car (or any other vehicle) is extremely easy and fast with Clover. For example, it might not be worth doing expensive repairs to an old car with high mileage, and you might want to save up to buy a new car instead of paying for additional insurance. Collision insurance covers repair or replacement costs if you have an accident, hit an object, or roll over your car. The best auto insurance company in Virginia is different for every driver depending on the circumstances and different insurance needs.
Virginia drivers can expect a second increase in the minimum limits of car insurance coverage on January 1, 2025. Learn more about when to eliminate optional coverage and penalties for driving without insurance in Virginia to make sure you're paying for the coverage you need. While buying only the state minimum requirements for car insurance may seem sufficient to avoid legal and financial problems, most insurance professionals recommend buying higher limits for greater protection. Each state follows certain auto insurance laws that determine how insurance companies cover injuries after an accident. Some states require drivers to have PIP or MedPay, while collision insurance is often mandatory if you rent or finance your car.
All insurance products are governed by the terms of the applicable insurance policy, and all related decisions (such as coverage approval, premiums, fees and charges) and policy obligations are the sole responsibility of the insurance insurer. Liability coverage in auto insurance is for the other party involved in an accident, especially if you were considered to be at fault. Many drivers in Virginia choose to purchase additional auto insurance coverage for greater financial protection. Having the best car insurance can save you from paying huge sums of money out of pocket in the event of a car accident.