Are you required to have full coverage when buying a used car from a dealer?

Question

Are you required by law to have full coverage insurance when buying from a used car dealership?

Answer 1

If you are taking out a loan for the vehicle, the lender will require you to carry full coverage insurance. If you buy a car in cash, then you will be required to have a current automobile insurance policy with at least liability coverage, regardless of whether you are buying from a dealership or private seller. I hope this helps and you can email me through Yahoo if you have questions.

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Answer 2

Liability Insurance is all that most states require. The full coverage insurance comes in from the lender. When you finance a car, it is the banks investment as well as yours. They want to insure it is properly protected. While you may not need full coverage going in, you may need to upgrade to full coverage on the new vehicle coming out, unless you are paying cash.

Answer 3

As long as the car is financed, it is required that you keep the car under full coverage insurance. Once it is paid off, you can switch to liability.

Answer 4

If you will be making payments to the dealer or another financial institution they will require you to have full coverage. If you own the vehicle outright then it is up to you.

Answer 5

purchase a used vehicle. coverage is costly on new automobiles, particularly specifically states/factors and much greater on the age of sixteen. New automobiles depreciate a great deal, and that i'm assuming your earnings isn't that large on the age of sixteen... you in basic terms won't be able to have adequate money it. kinfolk loans and/or co-signing are in no way a sturdy concept, yet that's yet another subject rely.