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How do I get liability insurance for a financed car?

I want to finance a car, but I only have money for liability insurance, and I know I'll need full coverage to finance it. Is there any way I can get liability insurance for a financed vehicle?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Liability insurance
will always be included as a component of any
car insurance
policy, but you typically can’t get liability-only coverage for a financed car. 
Almost all reputable lenders require borrowers to purchase a
full coverage car insurance policy
that includes both
collision coverage
and
comprehensive coverage
to protect their investment. Unlike liability coverage, these types of insurance pay for damage to your vehicle. 
Fortunately, there are other ways to save money. Here are some options:
  • Finance a cheaper car: This will save you money on the actual price of the car, which can help you afford full coverage.
  • Pay cash for a much cheaper car: Buying a car outright in a private sale means no
    car loan
    —which means you won’t be required to carry more than just liability coverage.
  • Look into insurance discounts: Depending on your driving history and other factors, you could be eligible for a variety of
    car insurance discounts
    .
Whatever choice you make, try using the
Jerry
app to make sure you get the lowest possible rate. We’ll find you competitive
car insurance quotes
from top providers in seconds so that all you have to do is pick the plan that works best for your needs.
View full answer 
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Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.

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