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Obviously all cars/drivers need to have some legal minimum insurance, generally only liability (essentially protecting others body/property). Not collision, which protects your own property. Without the later, wreck it you lose it. Because a car has a lien, which means it is pledged as security for a loan, does NOT mean it needs to have more insurance in itself. However, virtually any lender will require you to have insurance adequate to cover the loss of the asset you have pledged...since if you wreck it he doesn't want to own, or try to collect what is owed, against a wrecked worthless car.

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Q: Does an automobile with a lien holder have to have full auto insurance coverage?
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