Why is financing a vehicle important?
When financing a vehicle what coverage is mandatory to have?
When financing a vehicle how long should full coverage be carried?
When leasing a vehicle what coverage is mandatory to have?
What will happen if I don’t carry the coverage that the finance company wants me to have?
Do I need liability insurance when financing a car?

Why is it important to comply with all of this!!!

Answers are simple and not too complicated. First of all, when you finance a vehicle that’s a great step for you, as you have already “dived in the water” and there’s plenty of space for you to grow on…  Get it?  Building a Credit!  Ok, I know you knew that already!!!  But most importantly is being able to commit yourself on the type of payments including your insurance payment.  When financing a vehicle you need to maintain every month on time for whatever amount your car  payments are and term (length, years) you were obligated to pay within your contract.  Always read your finance agreement so you can understand what you’re paying and for how long you’re going to be paying.   Now, the Finance Company holds your title when you finance a vehicle from the dealership, and until you pay off that car, they want you to make sure you have the right coverage in case something happens to that vehicle.    You definitely want to budget yourself when buying a car to see if you can afford the payments and the insurance.

For Example: What would happen if your car got vandalized, someone steals your car or you have an accident, who will take that responsibility if you don’t have insurance…Now of course the car will be taken away from you by the finance company, a non- moving violation will be added to your driving record. (For No Insurance), you will pay a fine and last but not least your credit will be ruined. Do you want to take that chance; it’s totally up to you.  When financing a vehicle you need Comprehensive and Collision Coverage so you can protect your credit, your record and have less hassle. Indeed recommended is also the liability insurance, now some finance companies don’t care if you have liability insurance because it doesn’t pertain to them; however, not carrying liability insurance can cause a huge problem for you.  (Definitely NOT Recommended). When leasing a vehicle most of the leasing companies require you to have higher limits of liability. 100/300/50, you probably have seen these numbers if you’ve done leasing.  If any questions, concerns or even comments regarding our topic, feel free to shoot us an email and we will be more than happy to assist you and answer to any related questions or comments.  We hope that this information will give you some type of knowledge and get you in a better situation. 

From 1 & Only Insurance Services (Edo Edgar Gabrielyan)