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What happens when you drive with liability only on a financed car?
Wiki User
∙ 15y ago
Liability Insurance, or Rather Financial Responsibility are required by Law. Comprehensive and collision insurance is required by the terms of your finance contract with the lender. Failure to comply with the terms of your purchase contract can result in the following 1. Forced place coverage by the lender, which is much more expensive than buying the coverage yourself. The amount will be added to your finance note 2. Vehicle Repossesion by the lender. Failure to maintain your lender required coverage is a defaulting breach of your purchase contract.
Wiki User
∙ 15y ago
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Do you need insurance for 50cc gas scooter?
If it is licensed to drive on streets it is probably required to have liability insurance at least. If it is financed in any way you probably have to purchase not only liability insurance but also physical damage coverage as well in order to protect the finance company or bank.
How old does your car need to be to qualify for liability insurance?
How old the car is has nothing to do with it. The only time a car is REQUIRED to have FULL COVERAGE is when a car is being financed. In other words, a bank gives you a loan. Why? Because liability only fixes the other persons car, and if you get in a wreck, the bank will never get their money back from the car. I have owned ~5 cars in my life, financed one, and had full coverage insurance on it. Every other car has been liability only. So again, the age of a car has nothing to do with qualifying for liability insurance. If its being paid for with a bank loan, you need full coverage, if the car is paid off, you can get liability.
Which companies offer the lowest rates on liability auto insurance in Arizona?
Go to http://www.carinsurancequotes.com/ You can get multiple quotes from several companies by simply answering a few questions. Keep in mind that you can request liability insurance without comprehensive coverage only on vehicles that are not financed.
What happens if you hit an an uninsured motorists and you only have liability?
If the accident is your fault, your liability coverage will pay for the other person's damages. You will be out of luck as no coverage will be afforded for the damages to your vehicle or any injuries to you or your passengers.
What happens if you drive a car with the realse brake for a minute?
if only for a minute don't worry about it
What happens in a hit and run and you have uninsured motorist in your liability insurance?
Liability only protects you from claims, UM is almost always only for injuries only. If they caused the damage, you have to track them down and make a claim against their insurance if they have any and you can find them. Check with your agent, we can only provide general answers that apply to most people in most states.
Does liability pay for injuries?
It should to others, but if you have liability only, you may have only the minimal coverage req'd.
What is the difference in insurance if your vehicle is financed?
No, there is no extra charges on an insurance policy for a financed vehicle. Only difference will arise in the paper works, and it will mention that the vehicle is hypothecated.
Does liability cover you hitting your own car?
no it does not, liability covers only the second party.
What happens when you have permission to drive someone elses car and have an accident and you only have a learners permit?
then your both screwed
What can you do if your car was stolen and you only have liability?
Unfortunately, there is nothing you can do with your insurance company. If you only have liability insurance, they do not pay anything to have your vehicle replaced.
What is a type of liability in which you only lose your initial investment in the company?
A type of liability in which you only lose your initial investment in the company is limited liability. This means that shareholders or owners are only responsible for the debts and obligations of the company up to the amount they initially invested, and their personal assets are not at risk. This is commonly seen in the form of limited liability companies (LLCs) and corporations.
