full coverage insurance?

Question

i have a lot of money saved for a car, like $5000 and i could pay a car off but i wanted to finance about $1,000-2000 to start my credit. if i finance that much on say a 1997 le sabre, will i have to have full coverage still even if it's an older car?

Answer 1

Most finance companies are going to require that you carry full coverage on any vehicle that they finance!

Instead of financing a vehicle, why don't you check with your bank or credit union about getting a "secured loan" against money you have in the bank. With a secured loan, you put up a certain amount of money as collateral for the same amount that you borrow. You are really just borrowing your own money, so there is very little risk to the bank. Paying promptly will build your credit, and will also leave you with your original balance!

Answer 2

Why would you pay 6-7000 dollars for a 1997 Le Sabre? Yes if the car if financed, you must have full coverage.

Answer 3

The correct answer is yes. Anytime a bank or lending institution loans money on a car, they generally require full coverage because they want to have their interest in the car protected until you pay them back. The definition of "Full coverage" might vary slightly from lender to lender, but it generally always includes liability, collision, and comprehensive. Insurance companies always have a full coverage package that will meet any lender's requirements.

Hope this helped.

Answer 4

Most finance companies require full coverage on a financed car. This insures them that if your car is totalled that they will still receive their money. Most people wouldn't continue to make payments on a car if it's no longer usable.

Answer 5

If you do not owe a finance company money on your vehicle meaning it is fully paid for - you don't owe anything on your vehicle you do not need to get full coverage. Liability only would be fine.

Answer 6

Whatever the lender requires.