Do You Need Full Coverage on a Used Financed Car?

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Once you apply for financing to get approved for a loan for the used car of your choice, you may think you are done with financial decisions and can simply hit the Conway roads. However, it is important to consider auto insurance, and many drivers specifically ask: “Do you need full coverage on a used financed car?” Explore your insurance options, including whether you need full coverage or liability on a used car, in this guide from Beach Automotive Group. And remember, you can always consult the experts in our finance center with any questions!

Do You Need Full Coverage Insurance on a Used Car?

Many states do not require full insurance of any vehicle, whether it is new or used. However, finance lenders generally do require it in order to protect their investments. Such requirements will be spelled out in your loan term agreement.

So, do you need full coverage insurance on a used car? Yes, at least for the duration of the loan term. That’s to say, if your loan term is 36 months, then you will need full coverage insurance for the 36-month period. After this time, you can decide for yourself whether to continue with full coverage insurance.

Full Coverage or Liability on a Used Car

Do you need full coverage on a used car? If the used car is financed, you will need it for the duration of the loan term. If you buy outright, it is your choice whether to go with full coverage or liability on a used car. Consider the difference between the two below.

  • Full Coverage Insurance: Covers costs associated with damage to other vehicles or injuries to others when you are at fault in an accident, in addition to damage to your own vehicle. Includes liability coverage, as well as collision and comprehensive insurance.
  • Liability Insurance: Covers costs associated with damage to other vehicles or injuries to others when you are at fault in an accident.

Finance a Used Car at Beach Automotive Group

Now that you have a sense of what to expect in regard to insurance on your used car, it’s time to get the used car buying process started at Beach Automotive Group! Connect with our team today. 

 

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