QDo I Need Insurance To Get An Auto Loan?
AYes. Virtually all auto loans are secured by the vehicle itself. If the vehicle is lost or damaged, the lenderÒs security (the ability to sell the vehicle to recover the loan amount) is also lost. Therefore the lender will want to protect its security interest in the vehicle by requiring the borrower to place a policy of insurance that provides not only liability coverage, but also collision and comprehensive. The minimum amount of coverage required will generally be determined by the lenderÒs loan policy and can vary from lender to lender.