If your car is financed through a dealer do you have to full coverage insurance?

In most cases, yes. When you finance a car through a dealer, the lender will require you to have full coverage insurance. This means you must have liability coverage, collision coverage, and comprehensive coverage.

Liability coverage pays for damages to someone else's property or injuries to someone else if you cause an accident. Collision coverage pays for damages to your car if you're in an accident. Comprehensive coverage pays for damages to your car caused by events other than accidents, such as theft, vandalism, or natural disasters.

Some dealers may allow you to purchase only liability insurance, but this is rare. If you're not sure what type of insurance you need, talk to your lender or insurance agent.

Here are some reasons why you might want full coverage insurance, even if it's not required:

* You owe more on your car loan than it's worth. If your car is totaled in an accident, full coverage insurance will pay off the loan and any remaining balance.

* You want to protect your car from damage. If you're in an accident, full coverage insurance will pay for repairs to your car.

* You want peace of mind. Knowing you have full coverage insurance can give you peace of mind in knowing that you're financially protected in case of an accident.