Whether you buy, finance, or lease a vehicle, you must carry auto insurance. How much? Well, that depends on a few things: (1) what state you live in (for registration purposes), and (2) your lender. Different states have different minimum liability limits, and different lenders have different insurance requirements. This blog focuses specifically on what each individual lender requires, so that you can reference yours. To make your life easier, we compiled information from lenders’ websites, called their customer service representatives, and engaged with chatbots. Here's what we found:
Some of you may be wondering what does “proper, full, and adequate” coverage mean? Simply put, it means having the minimum liability limits required by your state or lender, and comprehensive and collision coverage not exceeding a certain deductible. Leasing companies and lenders make this part of the car-buying process more complicated than it has to be with their vague words and lack of transparency. We are doing our best to arm you with information in an easy-to-read format, so you know how much auto insurance you're required to purchase before you call your agent (hopefully us! 😊) and update your policy.
One last thing to keep in mind before you scroll through the links and images below is that your lender must be listed on your auto insurance policy as an “Additional Insured” and “Loss Payee”, since they have a financial interest in your vehicle. An “Additional Insured” is extended liability coverage. A “Loss Payee” is extended property damage coverage and a share of the payment in case you get into an accident. Hit us up directly with questions!