Do you need full coverage on a financed used car?
I'm going to be financing a 2018 Nissan Altima. Since it's used, will I still need to have full coverage on it?
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Answered on Jun 22, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“Regardless of the age of the vehicle, most lenders require that you add comprehensive insurance and collision insurance to a financed vehicle.
Lenders often require full coverage to protect the vehicle from damage. If the car is damaged, they want to ensure that it’s able to be repaired or that they will get the money they are owed if marked a total loss.
Whether your lender will require it will depend on the terms and conditions you agree to. Some lenders also have liability car insurance coverage requirements as well.
To find out what’s required, you’ll want to reach out to your lender before signing the finance agreement.”
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