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most lein holders require coll and comp coverage to protect their (the are co-owners in effect of this vehicle should you default on the loan they don't want to try and sell a wrecked car) vehicle.. if you don't have it and prove it to them that you do have coverage, they will put this coverage on the vehicle themselves (and charge you) typcially at a much higher rate, than you can buy it for, it would be good idea to put it on the vehicle yourself until it is paid off.....

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Q: Is collision insurance mandatory on financed auto that's nearly paid off?
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Learn The Facts About Florida Collision Insurance?

A full auto insurance protection policy will include collision coverage. Florida drivers should always carry adequate collision and comprehensive insurance to cover the costs of vehicle and property damage. In the state of Florida vehicle owners are required to carry personal injury protection and property damage insurance, but this covers only property damage and medical costs for individuals not at fault in an accident caused by the insured. If a driver damages his or her own vehicle or certain items of property, collision insurance will cover the cost of repairs.Recommended Amount Of Collision Insurance In FloridaA new car that is financed will require collision insurance as part of the loan agreement. Even if a car is paid for in full and the owner holds title, collision insurance is recommended if the vehicle is worth a substantial amount of money. Customers can contact a licensed insurance agent to discuss the costs of collision insurance, which varies widely depending on the vehicle covered and the driving record of the policyholder.A basic collision insurance policy will cover damages to the vehicle in an amount not exceeding the actual value. If a car is worth $10,000 the policy will cover this amount. The insurance will in most cases carry an agreed upon deductible which the insured must pay out-of-pocket. Most repairs to a car will not cost nearly as much as the vehicle is worth, but in the event of a serious accident caused by the insured that renders the car useless, collision insurance will pay off the loan balance. If the car is worth $10,000 and the loan balance is less than this amount, collision insurance will cover the entire remaining principal. In the event of negative equity, collision insurance will only pay up to the value of the car minus the deductible.Covering Losses On A Stolen VehicleWhen collision insurance is purchased the cost may vary according to where the vehicle is kept at night. Some neighborhoods have a higher number of stolen vehicles reported each year. The comprehensive insurance section of a full collision coverage policy will pay off the loan balance if the vehicle is never recovered. If the car owner is deemed by the insurance company to be living in a neighborhood where vehicles are frequently stolen, policy costs for collision and comprehensive insurance may be higher.Setting Deductible AmountsFlorida drivers can choose several deductible amounts when purchasing collision insurance. The most common amount is $500 and is the figure used when initial quotes are given. Drivers can choose a lower deductible but the policy will be slightly more expensive. Some insurance companies offer safe drivers a shrinking deductible package, where the out-of-pocket expense for car repairs decreases each year the policy is in force.

Buying Collision Car Insurance In Georgia?

A car is a valuable investment. It may be worth many thousands of dollars yet can be severely damaged in a blink of an eye. If a vehicle owner in Georgia causes damage to his or her car, repairs can be quite costly. Collision insurance covers the cost of damage to a vehicle owned by the person carrying the policy. This is separate from liability insurance which covers damage to vehicles and property owned by someone else. The cost of collision insurance depends on the value of the car and the driving record of the customer.Buying The Proper Amount Of Collision CoverageIf a car is purchased brand new and is being financed, lenders will require the owner to carry a certain amount of collision insurance. The car's title is being held by the bank or financial institution and is in a sense the property of the lender until the loan is paid off. The car acts as security for the loan because of its value. If the vehicle should be severely damaged in an accident caused by the registered owner, car payments will likely cease because the owner needs to pay for a new car. The lender will lose on the investment because the damaged car is now virtually worthless.Collision insurance amounts are determined by the value of the car purchased. When asking for an insurance quote from an agent the car's make, model and VIN are needed. This will help determine the proper amount of collision insurance required to satisfy the lender.Combining Collision and Comprehensive InsuranceComprehensive insurance is nearly always included in a quote given to Georgia drivers. This coverage is very important because in many cases an at-fault individual cannot be identified. If a driver finds his or her car damaged in a supermarket parking lot and no note is attached to the windshield, damages cannot be claimed through the at-fault party's liability coverage. Most likely the culprit was not covered properly and decided to leave the area immediately. Or if an act of nature causes damage, such as a falling limb from a tree, collision insurance must be supplemented with comprehensive coverage to pay for the repairs.Insurance For Vehicles Owned OutrightEven if a car is fully paid for and the owner holds the title, careful consideration should be given to carrying collision insurance. The car may still be quite valuable and may cost much to repair if damaged in a traffic accident. Collision coverage includes payment for damages even if another vehicle is not involved. A driver can lose control of a car and slide off the road. Any damage will be covered under the collision insurance policy. Parents who have teen drivers may also want to keep their collision insurance in force and add the young driver to the policy. This is important if the teenager is driving a car owned by the policyholder regardless of the vehicle's value.

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