If I'm not driving my car but am making payments do i have to keep insurance on it?

Answer 1

Yes, if you are making payment there is a lender. Lenders insist on full coverage insurance until the car is paid for.

Answer 2

It is in your best interest to have insurance on any car in your name. When you signed the paperwork for the financing, you also signed and insurance page. That page stated that while making payments you would also carry at least the minimum full coverage insurance on the vehicle. This financial clause you signed to was so they could recoup any money in the case of a loss. Depending on the finace company, it could go as far to state that if you do not have insurance they have every right to reposess the vechicle due to the breaking of contract terms. The monthly bill sucks, but it could be worse if something happens.

Answer 3

Sorry, but yes. Any thing that has a lein on it requires you to insure it for replacement purposes . Especialy something that the bank owns. You might get by with it if they dont ask to see it ornothing happens to it , but who can predict the odds of a freak acccident ie.. strong wind out of no where blows , (large) limb breaks and falls on ur car. No insurance = u paying for a crushed car for the next 5 yrs that you cant even drive. So do ya feel lucky? Hope this helped shine a light on a different side.

Answer 4

You need insurance on a vehicle whether you are driving it or not. If it is parked on the street, you can get a fine for not having it insured. You might be able to park it in your yard as long as it doesn't create an eye sore and no one complains. You can also park it at one if those storage yard too. Just remember, if it gets damaged in any way form vandalism to a tree falling on it, you will not be covered. Good Luck!

Answer 5

Yes, all lenders require full coverage insurance until the end of the loan term. This is to cover their equity in the vehicle. The lender has paid the money for the car and you are paying them back for it. Even if you are not driving it, what would you do if a tree limb fell on it or hail destroyed it or it caught on fire and was destroyed ? Full coverage insurance will cover your loss which is actually the lender's loss until you finish paying for it.

Answer 6

There are still things that could happen to your car if you are not driving it. Is it in storage? It could get comprehensive damage, such as theft, fire, vandalism, etc.

For how long will thte car be inactive? If it's for a very long time, you can either lower it, or remove it, but then you REALLY have to not drive it, and probably can save more money by getting an inactive registration at the DMV.

Answer 7

You should! There are lot of reasons to carry insurance coverage. Insurance can protect your vehicle even if you aren't driving it. You're insurance rates will remain cheaper in the future if you maintain insurance coverage. This is a big factor for insurance companies in determining rates. They want to see continious coverage for years. This allows them to offer discounts for drivers who maintain coverage.

Answer 8

You still have to keep full coverage on it because it's not yours yet. If you're still making payments why aren't you driving?

Answer 9

the answer is simple.. NO, as long as it is not being driven on or parked on the streets.. and Yes you should.. for your own sake.. no one, not anyone nor any financial entity can force you to have insurance.. they may say that they require it.. but they cannot enforce it.. they cannot make you have the coverage.. If I were you, I would at least keep some high deductable, cheap insurance coverage on it just in case. good luck

Answer 10

Depends on the state. In some states, you can register your vehicle as "not operational" and give the bank proof of this, and then you won't have to pay insurance.