Does a financed car need to be insured?
Do I need to keep insurance on a vehicle I won't be driving? I will be away for work and my vehicle will just be parked at my home for the considerable future. It's not paid off yet.
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Answered on Jun 21, 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.
“Most lenders require that any financed vehicle carry insurance, including comprehensive insurance and collision insurance.
Even if you won’t be driving your vehicle, you signed a contract with your finance company stating that you would keep the car insured and protected from damage.
If your vehicle wasn’t financed, you’d be able to reduce the coverages to the minimum coverage car insurance defined by your state.
You’ll want to review your finance agreement to determine the terms and conditions. If you’re unsure, you should also reach out to your lender directly. You may be able to come to an agreement on something, but it’s likely you’ll have to keep it fully insured.”
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