How does having a car loan affect my auto insurance?

Will I be required to pay more for auto coverage?

“Most commonly, having a car loan can affect your auto insurance when your lender requires you to have comprehensive coverage and collision coverage. Both of these types of insurance are up to double what you’d pay for liability, costing you more each month for coverage.
Your lender will typically want you to have full-coverage insurance on the financed vehicle because they will still own it, and so they will want to protect their investment. “
Eric Schad
Answered on Apr 08, 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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