| Most loan agreements will require auto insurance. Usually comprehensive and collision to
protect a financed vehicle. While some lending institutions market coverage issued by insurers, they cannot require you to buy insurance from a particular company, agent or lender.
However, if you do not maintain coverage, the lending institution will buy insurance to protect its interests, but must give you prior notification. The lender may then add the insurance premium cost to your loan by increasing the number and/or amount of your monthly payments. Generally, you pay less when you buy your own coverage. You should keep coverage records until you pay off your debt and receive the title. Keep proof of coverage in your automobile, since you may need it at any time. |
