I live in Southern California, and am making payments on a 2000 Toyota Tacoma through HSBC Bank. My insurance payments are $344.00 a month (more than my truck payment!) since I have two speeding tickets and am 22yrs old. Am I required to carry Full-Coverage, can I get away with liability only?
2006-11-02 02:36:17 · 13 answers · asked by Smirx 2 in Business & Finance ➔ Insurance
You are only required to carry collision and comprehensive coverages which protect the vehicle you are financing. I agree that raising your deductible is a good idea if you are looking to cut costs. Make sure that you are getting any discounts available such as anti-theft device, mileage discount, etc. Review what you are carrying for liability. You may have more coverage there then you can afford. If you dont have any assets that you need to protect perhaps lowering your liability for a while would be helpful. Call your insurer and explain your money is tight and have them review your coverages in detail-that is there job.
Good luck.
2006-11-02 05:51:09 · answer #1 · answered by capecoddmh 1 · 0⤊ 0⤋
If you drop down to liability only the bank will find out and let you know if it is not acceptable. I would check with the bank first before you do anything. You don't want to harm your relationship with them because of the insurance issue.
One thing you could do is raise you deductibles on the required comphrensive and collision deductibles. Your bank may allow you to have deductibles as high as $1000. Also, look at your liability limits. Maybe you could lower those and save some money as well.
Another suggestion - get some insurance quotes from other companies. Their can be a big difference in premium between companies. You won't have many option with your violations but it's worth a look. In my state Progressive is usually the cheapest company for someone of your age with your type of driving record. It's cheaper to buy online than through an agent. If you are comfortable not working with an agent I'd go that way.
Good Luck!
2006-11-02 09:30:58 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Ask the bank thats the only way to know exactly what you "have" to have. However with two speeding tickets maybe you do need the full coverage as you are at risk for an accident and will have to pay the vehicle off by yourself if you dont have it.
2006-11-02 02:45:41 · answer #3 · answered by elaeblue 7 · 0⤊ 0⤋
No. By law, they must give you only the coverage for which you paid. They are not allowed to give you more coverage for free. The law does not require full coverage. The terms of the loan require you to get full coverage. The insurance company is not a party to the loan and is not required to give full coverage. You, and only you, are subject to the requirement that there must be full coverage.
2016-05-23 16:45:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
As long as you're still paying off your truck, you have to carry collision and comprehensive coverage on it. What you are really doing here is protecting the interest of the bank. They are the one's that require it, so they can be protected if your truck gets wrecked or stolen. This way, they know it will get fixed or paid for if hit, vandalized or stolen.
Once it's paid off, and you have clear title, you can drop the collision and comprehensive if you want. Of course you will always have to carry liability coverage.
2006-11-02 07:13:54 · answer #5 · answered by drobrules 3 · 0⤊ 0⤋
First off, there is no option/button insurance agents/companies have that says "full coverage". This is a misnomer that has been used unknowingly by people, letting the agent/company choose the highest Liability coverage rating available to him/her. Please purchase the Insurance liability coverage that is specifically stated in you're loan/lease agreement. It is there in writing! just look for it :)
2015-03-23 03:46:17 · answer #6 · answered by Tyler 1 · 0⤊ 0⤋
If you have a bank loan on the vehicle, the bank requires you to have full coverage.
2006-11-02 06:03:14 · answer #7 · answered by zippythejessi 7 · 0⤊ 0⤋
You might check into higher deductibles, but I always tell people not to take a higher deductible that you can afford if something happens. If you take 1000 ded. and you can't come up with that amount if something happens you'll be riding around with ugly body damage.
I also always tell people to get an insurance quote before buying a car. Once you've signed the papers to buy, you are stuck.
2006-11-02 02:46:47 · answer #8 · answered by mei-lin 5 · 0⤊ 0⤋
Read your loan documents. I've never seen a loan agreement that DIDN'T make you carry collision and comprehensive on the car.
Unless the "loan" is a home equity loan. If the car is NOT collateral, then you should be able to drop the collision & comp. If the car IS collateral, you won't be.
2006-11-02 02:52:31 · answer #9 · answered by Anonymous 7 · 0⤊ 0⤋
Full coverage is required to protect the collateral for the loan company.
2006-11-02 02:39:33 · answer #10 · answered by boker_magnum 6 · 1⤊ 0⤋