Do I have to pay off my loan if I get in an accident in a financed Ford Mustang with only liability insurance?

I financed a Ford Mustang for $20,000. When I called to get insurance, I forgot to tell the agent that I needed full coverage. A week later, I was in an at-fault accident that totaled the car, and now the insurance is denying my claim. Do I have to pay for the rest of the loan?

“This is going to be one of those life lessons you have to learn the hard way.
It’s not up to the insurance agent to choose your coverage for you. Since you only chose liability (and the dealer will rarely check whether you actually bought full coverage), you’re on the hook for the remaining balance of the loan after the lender sells the car for salvage.
In the future, make sure you have comprehensive coverage and collision coverage on any car you decide to finance.”
Eric Schad
Answered on May 04, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.

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